SBA Loan Programs

  ECONOMIC AID ACT NOTES (82 PAGE IFR 1/6/2021) ·          Extends PPP Authorization until March 31, 2021 ·          New (first) PPP applicants can use 2020 OR 2019 records to calculate PPP loan amount ·          Authorization limit of $806,450,000,000 for 1 st and 2 nd PPP combined ·          60/40 rule still applies:   payroll/other eligible expenses (with some noted additions p. 50) o    Uninsured property damage costs related to public disturbances that occurred during 2020) o    Covered supplier costs o    Worker protection expenditures (to comply with guidance of Health and Human Services, CDC, OSHA or equivalent) o    note:   self employed – interest on loans incurred before 2/15/2020 ARE NOT ELIGIBLE FOR FORGIVENESS – see page 53) ·          PPP Loans $150,000 or less do not need to provide supporting documentation for forgiveness but must retain records for 4 years and are subject to audit. ·          REPEALS EIDL Advance forgiveness reduction.   “Any EID

While the CARES act has provided 6 months of debt relief for existing SBA borrowers "in regular servicing," this relief will end for existing borrowers in October and eliminated for new borrowers who can't close and fully fund in a few weeks - mid August for 504 or fully fund by September 27 - 7a borrowers.   I believe Congress should pass legislation that would extend this Section 1112 of the CARES Act to extend these payments for a MINIMUM of 3 months.  It is painfully obvious that the recovery from the pandemic is going to take much longer than originally anticipated when the CARES act was passed in late March. I applaud the speed and efficiency the SBA executed this section of the law.  It is time for Congress to recognize the return on this investment and extend its provisions. The businesses benefiting from this provision were viable businesses in good standing prior to the pandemic ("regular servicing").  Businesses will continue to struggle to adapt to a

I support the National Association of Developme nt Companies (NADCO) urging of the Senate to approve  a bipartisan bill that would extend the CARES act debt relief and grant CDCs with critical flexibility and SBA financing tools to help businesses succeed. The six months of debt relief delivered immediate and critical assistant to borrowers.  Unfortunately, the pandemic continues to wreak havoc on our economy and threaten the recovery of small business borrowers.  Urging Congress to amend and extend the debt relief benefits to provide an additional 3 months of loan payments to borrowers approved before September 27, 2020 and extend the program for any borrower approved for a loan on or after that date have 9 months of debt relief. In addition, the following stimulus provision should be included in the Senate Small Business relief bill: Expand authority of 504 debt refinance program: -Eliminate prohibition on refinance of government guaranteed debt -Eliminate suspension of program if 50

July 2020 debenture rates hit all time lows with the 20 and 25 year rates just .64% over comparable treasury market rate, yielding note rates of just over 1% prior to servicing fees (currently 1.421% for most loans approved in FY 2020). 10 year debenture (offered bi-monthly) yielded a note rate of LESS THAN 1% at .29% over comparable treasury. These are trying times for businesses, but these programs are available at all times to provide cash flow consistency for borrowers. 

Going LIVE on Microsoft Teams with SBA and other CDC colleagues for a Monday (6/29/20) Morning at 10:00 a.m. for Virtual Meet and Greet to talk all things 504. Hope you can join, hope my technology works, hope my dog doesn't bark or my kids yell "MOM!", the FEDEX guy doesn't come ... Really - don't miss it - It'll be fun ( Carlos Hernandez  promised) - and he always delivers! Call  in: 202 765 1264 Access  Code:559614371# Cut and paste entire link into your browser: https://teams.microsoft.com/l/meetup join/19%3ameeting_Y2ExMzM0ODUtMDFjOC00NjExLWFmNTctY2FkM2JlMT UzZDE3%40thread.v2/0?context=%7b%22Tid%22%3a%223c89fd8a 7f68 4667 aa15 41ebf2208961%22%2c%22Oid%22%3a%2206c8d445 8327 4671 904f 888cdef3813f%22%2c%22IsBroadcastMeeting%22%3atrue%7d