Daily Archives: January 13, 2021

Cares Act 2 (early 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 6 months, capping the payments at $9,000/month on loans approved between Feb. 1, 2021 and Sept. 30, 2021

SBA 7(a) Previous Loans-

*Borrowers who already received 6 months of principal & interest paid by the SBA will receive an additional 3 months.

*Borrowers in certain industries such as restaurants, salons and retail stores will receive an additional 5 months of payments.

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.

For more information and updates, Check Diamond Financial’s link:

Major Updates to SBA Included in Stimulus Bill