We believe the legislation provides incentives to future small business borrowers as well, such as:
PAYMENT SUBSIDIES
- Loans that are APPROVED between February 1, 2021 and September 30, 2021 will receive six (6) months of payment relief upon funding (capped at $9,000 per month, per loan).
TEMPORARY FEE ELIMINATION
- The legislation eliminates the 0.5% SBA Participation Fee and the 1.5% CDC Processing Fee for all loans APPROVED from the date of enactment of the Act and ending on September 30, 2021.
504 DEBT REFINANCE ENHANCEMENTS
The legislation provides substantial improvements for 504 debt refinancing including:
- Strengthening 504 debt refinance with expansion by increasing the debt refinance amount from 50% to 100% of expansion costs.
- Strengthening 504 debt refinance without expansion by allowing the refinance of government guaranteed debt, and allowing for the refinance of Qualifying Debt that is only 6 months old vs. 2 years old.
- Eliminates the requirement that the business must be current on all payments over the last 12 months (this will now be a credit consideration rather than an eligibility issue).
504 EXPRESS LOAN PROGRAM
Once implemented, the legislation grants CDC's with Accredited Lenders Program (ALP) status the ability to approve, authorize, close, and service 504 loans of $500,000 or less. The program will expire on September 30, 2023. EDF is one of a limited number of ALP lenders across the county that will be eligible to participate in this program.
ADDITIONAL INFORMATION
