The CARES Act has now been approved by Congress. We still need to hear the final details of the forms and applications from SBA. We are told this should arrive within 15 days. In the meantime, please see the information below:
^^Please be advised that we did not prepare these information sheets and are not responsible for any inaccurate information contained within them. However, we believe the information to be as accurate as possible at this time.
|Here is what we know:
Congress has passed a $2 trillion coronavirus relief/economic stimulus bill (the CARES Act), and the President is expected to sign into law today.
Legislation includes the following provisions impacting SBA lenders:
· $17 Billion for SBA payment of borrower principal, interest, and fees for a 6-month period beginning with the next payment due, for 7(a) including Community Advantage, 504, and Microloan borrowers.
· This is not a deferment but is actual debt forgiveness for the borrower.
· These SBA payments will be enacted by SBA automatically.
· There is a provision that states if a borrower is already on deferment, the CARES Act debt forgiveness payments will activate at the end of the deferment period.
· Loans made today, and within the next 6 months, will also have their principal, interest, and fees paid by SBA for 6 months starting with the first payment.
• $325 Billion for the Payroll Protection Program, a special 100% guaranteed 7(a) program that includes a debt forgiveness provision. This program ends June 30, 2020.
• Increase in maximum loan size for the 7(a) Express Loan Program from $350,000 to $1,000,000.
Information Links below:
Please be advised that we did not prepare these information sheets and are not responsible for any inaccurate information contained within them. However, we believe the information to be as accurate as possible at this time.
SBA DISASTER LOAN:
SBA Disaster related funding is currently a direct loan from the Federal Government or State Agencies to the borrower.. You must apply to SBA directly- you do not go through a bank.
The Alabama Small Business Development Center is offering two webinars daily on how to apply for Disaster Relief. The presentation is available on their website: www.asbdc.org
Please select this link to the SBA power point presentation on how to apply:
Please visit the links provided below for the SBA Disaster Loan program:
SBA Disaster On Line Application
SBA Disaster Relief Information
Three Step Process Disaster Loans
Check Here to See Your State or County is Approved for relief yet
Birmingham Strong Fund
Existing SBA Loan Deferment Highlights
Existing 504 Loan Borrowers