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SBA CARES Act 2 Update!

Business Sales and M&A Specialists

March 10th 2021

Update to the SBA Payment Relief Program that became effective on 2/19/2021. The SBA determined that they will not have sufficient funding to make all the payments outlined in the December 2020 Cares Act.

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 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.