COVID Economic Aid Act Revs Up SBA Lending Programs

Businesses benefit from more proactive lending programs through the SBA.

We have all experienced the treachery of the COVID pandemic both personally and economically. Needless to say, COVID has forced everyone to reassess and adjust to new ways of working, socializing, and shopping, among other major changes in our lives. The same is true for businesses who are fighting for not only their survival, but also what to do to help their businesses remain sustainable and viable.

To assist businesses and people, Congress approved, and the President signed, the Economic Aid Act that provides another round of stimulus funding to individuals and businesses. Through the extension of the SBA Payment Protection Plan and the Economic Injury Disaster Loan Program (EIDL), businesses have access to federal funding that is either eligible to be forgiven by the SBA, and/or receive favorable loan terms that offer long-term financing and low fixed rates.

Because of COVID, the SBA 504 Fixed Asset Loan Program has quickly become a featured loan product for SBA. Here is why:

  • Businesses can refinance existing government debt and existing qualifying business debt into an SBA 504 loan to take advantage of long-term, low interest rate borrowing available currently through SBA.

  • Businesses can save approximately 2% on the standard initial SBA borrowing fees charged for an SBA 504 loan.

  • Businesses who have an SBA 504 loan approved by 9/30/2021 also qualify to have their first three monthly payments paid for through the SBA Debt Relief Payment Plan.

These are just a few of the reasons it makes sense for business owners and managers to consider using the SBA 504 Fixed Asset Loan Program. There are many more features to the SBA 504 Loan Program that will benefit your business.

Access Business Finance is at your service to help you determine how your business can take advantage of SBA COVID relief programs.