CARES Act Impacts SBA 7(a) Loans
CARES Act Creates Significant Benefits for SBA 7(a) Loans
While there are several SBA loan related provisions and benefits in the recent government actions designed to create relief to the current COVID-19 situation, one in particular – the SBA Debt Relief program – is what we’d like to focus on.
This is taken today from the SBA.gov website (https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-4):
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis. Under this program:
- The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
- The SBA will pay the principal and interest of current 7(a) loans for a period of six months.
This is significant news for both business owners that currently have an SBA 7(a) loan, and prospective business buyers considering an SBA 7(a) loan for their acquisitions.
If you currently have an SBA 7(a) loan, we’d suggest reaching out to your bank to get more information about this new ruling.
If you are considering an SBA 7(a) loan to make an acquisition and would like to speak with an SBA loan specialist, please let us know and we’ll be happy to put you in touch with multiple lenders who can help you.
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