With the recent extension of the CARES Act for 2021, there are a number of significant changes to enhance the incentives for SBA loan borrowers – making the next several months the ideal time to buy, and therefore sell, a business.
Some of the specific highlights include:
- SBA payment forgiveness, yes, the government will make your first 6 months payments for loans approved from 2/1 thru 9/30. It will be capped at $9,000 per month. As before, this is not an advance, but actual payment of the loan, worth up to $54,000.
- Increases to 90% the loan guarantee amount given to lenders on some loans, including for Community Advantage loans, until October 1, 2021. That’s up from 75%.
- Waives lender and borrower fees for some loan programs. This Guarantee Fee typically runs between 2.5 to 3%