COVID-19 Relief Bill Information
Congress has passed a $900 billion COVID relief package combined with the $1.4 trillion governmentwide funding under the 2021 Consolidated Appropriations Act. Below, you will find the highlights found in this bill provided by NADCO (National Association for Development Companies).
We are awaiting guidance from the SBA at this time. Please stay tuned for updates as we learn more.
Extension of CARES Act Payment Subsidies
- Borrowers may receive an additional three months of payment assistance starting in February 2021, capped at $9,000 per borrower per month.
- After the three-month period, borrowers considered underserved may receive an additional five months of payment subsidies capped at $9,000 per borrower per month, including borrowers with–
- SBA Microloans or Community Advantage loans, and
- Borrowers with any 7(a) or 504 loans in hardest-hit industries, including food service and accommodation; arts, entertainment, and recreation; education; and laundry and personal care services.
- Payment subsidies for six months may resume for new loans approved from February 1 to September 30, 2021, capped at $9,000 per borrower per month.
- May include the refinance of government-guaranteed debt.
- May allow the refinance of a Qualified Debt that is 6 months old (down from 2 years).
- The refinance of Third Party Lender loans in an existing 504 project may be allowed to include cash-out for business operating expenses to assist small businesses leverage existing equity capital to fund business operating and recovery expenses.