Next Stimulus Package

With the approval of the next Stimulus Package, we want to share with all a few items that will benefit small business owners related to SBA loans.

SBA guaranty. The package includes a topic that allows banks to be protected up to 90% on their SBA loans. This will help increase lending activity among banks but we do feel they will still be cautious in certain industries. We’ve already discussed with many of our lenders and they plan to increase activity next year and do plan begin working on new deals at the start of 2021.

SBA guaranty fee. The package includes waiving this fee which is a huge benefit for small business owners which is a substantial saving on the closing costs (estimated 3%+). Refinancing your non-SBA debts into a SBA loan will be the perfect opportunity to take on this. This will provide you to consolidate your debts into one long term loan with no balloon payments.

Payment forgiveness. This is an extension of the prior 6 months payment relief in the CARES Act. However, SBA plans to pay the monthly payments for all SBA loans and longer for certain industries. We are waiting for more details on this. This is a significant savings for many small businesses and will help get through the winter season for many industries that are slow during this time.

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. Don’t forget to subscribe to our newsletter.