Managing My Business, Growing My Business
Small Business Economic Aid Bill Offers Attractive Business Loan Opportunities through SBA Loan Programs
Date:26 March, 2021
In a continuing effort to stimulate the U.S. economy and expand employment opportunities, a bill backed by the Small Business Administration (SBA) makes available new loan programs and reduces fees for small businesses in this country. The Small Business Economic Aid Bill offers benefits and enhancements to SBA Express loans (7a and 504), as well as others.
Texas Gulf Bank’s SBA Lender is here to help your business navigate the process of securing SBA funding and taking advantage of available enhancements included in the economic aid bill. Read more about a few of the additional benefits below.
Types of Loans That Qualify for SBA 7a and 504 programs:
- Commercial Real Estate--such as buying a building, financing construction or making improvements to an existing building
- Business Working Capital
- Business Purchase/Business Refinance
- Heavy Machinery/Equipment
- Furniture, Fixtures & Supplies
Benefits of Utilizing 7a and 504 SBA Loan Enhancements Under the Small Business Economic Aid Bill Include:
- Loan guaranty increased on 7a loans to 90%, including Community Advantage loans, until October 1, 2021
- Up to 25-year term on owner-occupied real estate (no balloon)
- As low as 10% equity requirement (owner-occupied properties), preserving capital and/or providing the opportunity to increase the size of your project
- Pricing flexibility
- Longer amortization
- Closing costs may be included in the project costs
- Temporary fee waivers-SBA guaranty fees are temporarily waived for borrowers of 7a loans. For 504 first mortgage loans, the .50% fee, as well as the 1.5% CDC Processing fee is temporarily waived.
Assistance for New SBA Borrowers
For new 7a. loans and 504 loans approved between Feb 1, 2021 and Sept 30, 2021, the SBA is authorized to pay an initial THREE months of principal and interest payments that borrowers owe capped at $9,000 per month. These payments are not guaranteed as they are limited to the level of available funding provided by Congress.
Existing SBA Loan Customers:
All SBA borrowers in good standing with qualifying SBA loans approved prior to the CARES Act eligible for TWO months of principal and interest payments subsidized by the SBA up to $9,000 per month. These payments are not guaranteed as they are limited to the level of available funding provided by Congress.
Certain businesses are eligible for an additional THREE months of subsidized payments including:
- Food Service - Hospitality
- Arts & Entertainment - Recreation
- Education - Laundry
- Personal Care Services
Because SBA states that funds are limited, time is of the essence. Texas Gulf Bank has helped many small businesses successfully secure SBA loans. Learn more by speaking with one of our knowledgeable lenders. Call 1-800-467-7216, email firstname.lastname@example.org, or visit one of our many local banking centers.
*All other standard SBA eligibility rules apply. All loans subject to credit approval.