Update 2-17-2021 SBA Payment Relief Program details
We wanted to let you know that there have been recent updates to the SBA Payment Relief Program that will become effective on 2/19/2021. Unfortunately, the SBA has determined that they will not have sufficient funding to make all the payments outlined in the original bill.
Below are the following changes:
- New SBA 7(a) and 504 loans approved 2/1/2021 through 9/30/2021 will receive 3 months of covered payments instead of the original 6 months. These 3 months of covered payments will be subject to the availability of SBA funds.
- SBA 7(a) or 504 loans that were approved on or before 9/27/2020 and disbursed on or after 9/28/2020 during the first round of relief funding will only receive 3 months of covered payments.
- SBA 7(a) and 504 loans that were approved and fully disbursed on or before 9/27/2020 will continue to receive payments for a 6-month period under the original CARES Act.
- SBA 7(a) and 504 loans approved before 3/27/2020 during the second round of relief funding will only receive 2 months of covered payments.
If you have any candidates that are considering an SBA loan, now is the best time to maximize the program benefits. The payment benefit is awarded on a first come first serve basis, and there’s no guarantee that the relief funding will last through September.