Economic Aid Act

We’ve received information on how the extension and new payment relief will be applied for existing SBA loans and new SBA loans. We want to point out the benefit for the 7a loan program and many lenders are pushing this at this time.

For new loans that are approved on February 1^st and after, SBA will be paying the payments due for the first 6 months of new SBA loans up to $9k. This is a significant benefit for small business owners. However, there is a budget of $3.5 billion that was approved by Congress and once the funds are depleted, the benefits will stop. What this means is that you are not guaranteed to received the 6 months benefits of the payment relief if the funds run out. For example, if you close your loan in June, there is a possibility that you may only get a few months if the budget is depleted.

We already have lenders that are pushing to close quickly on loans in process since they want the clients to maximize their benefits.

If you have any questions related to the topics above or any other topics related to SBA, feel free to reach out to us. Our team members have prior banking experience with extensive knowledge in SBA and can help answers questions related to eligibility and other topics. Don’t forget to subscribe to our newsletter!