As bankers, accountants, attorneys, and other professionals supporting businesses during these trying times, you know that every dollar is a lifeline for those trying to survive and grow. You’re using every tool available to help your clients succeed and are always looking for new, creative solutions. Now more than ever, banks and businesses are turning to the SBA 504 loan program as a tool to help businesses succeed.
With businesses struggling under the weight of the pandemic, the U.S. Small Business Administration (SBA) has rolled out thoughtful, impactful changes to the program that provide even more opportunities for businesses to recover and grow. Here’s a summary of the changes.
SBA loan payment relief (Section 1112 payments)
All SBA loans approved from February 1, 2021 to September 30, 2021 will receive 3 months of payment subsidies by SBA (capped at $9,000 per month). Added payment relief is also available for existing SBA borrowers, including expanded eligibility for borrowers that were not able to qualify for payment subsidies in the first round. More details are available at our Section 1112 payments guide.
Other anticipated SBA loan changes
There are also many other exciting changes coming that impact the SBA 504 loan program such as:
- Significantly reduced fees for all SBA programs, including 504
- Fast processing for 504 loans under $500,000
- Expanded eligibility for 504 refinance projects
We will keep you closely updated as we learn more from SBA. In the meantime, we encourage you to contact an SBA lender to discuss how the 504 loan program can benefit your small business borrowers.