Sba Announces Changes To The 504 Program Including 6 Months Of Payment Relief

by Rino Abdulah April 04, 2023 Posting Komentar

PPT The SBA 504 Loan Program PowerPoint Presentation, free download from www.slideserve.com

Overview

The Small Business Administration (SBA) has announced changes to the 504 program to provide relief to small businesses impacted by the COVID-19 pandemic. The 504 program offers long-term, fixed-rate financing for major fixed assets, such as land and buildings. The changes include a six-month payment relief program for new and existing borrowers.

Payment Relief Program

The SBA's payment relief program will provide six months of payment relief for new and existing 504 program borrowers. The relief will cover principal and interest payments on loans approved before September 27, 2023. This program is designed to help small businesses manage their cash flow during this challenging time.

Eligibility Requirements

To qualify for the payment relief program, borrowers must have an existing or new SBA 504 loan approved before September 27, 2023. The borrower must also be current on all loan payments as of March 27, 2023. Borrowers who are not current on their payments may still be eligible for relief if they can demonstrate that they have been impacted by the COVID-19 pandemic.

Other Changes to the 504 Program

In addition to the payment relief program, the SBA has made other changes to the 504 program to make it more accessible to small businesses. These changes include: - Increasing the maximum loan amount for manufacturing projects from $5.5 million to $10 million - Allowing refinancing of debt incurred as a result of a declared disaster - Expanding the definition of a small business to include those with a tangible net worth of up to $15 million and an average net income of up to $5 million

How to Apply

To apply for the payment relief program or any other changes to the 504 program, small businesses should contact their local SBA district office or a certified development company (CDC). The SBA has also created a resource page on its website to help small businesses navigate the changes to the 504 program.

Conclusion

The SBA's changes to the 504 program provide much-needed relief to small businesses impacted by the COVID-19 pandemic. The payment relief program and other changes make the 504 program more accessible to small businesses in need of long-term, fixed-rate financing for major fixed assets. Small businesses should take advantage of these changes to help them manage their cash flow and grow their businesses.