Cares Act 2 (Updated Information)
SBA 7(a) New Acquisition Loans-
The SBA will:
*increase the loan guarantee to lenders from 75% to 90%.
*waive guarantee fees to all borrowers until Sept. 30, 2021.
*pay principal and interest payments on behalf of borrowers for 3 months, capping the payments at $9,000/month on loans approved between Feb. 1, 2021 and Sept. 30, 2021
Paycheck Protection Program (PPP) Round 2
*Loan amounts are still 2.5x monthly payroll costs, but capped at $2 million.
*Eligibility for a second loan – the business must have experienced a 25% or more drop in revenue in Q1, Q2, or Q3 of 2020 over the same period in 2019.
*PPP loans are not taxable and not considered income.