Random Hotel Exterior

New directive for SBA 504 & 7 (a) loans

February 26, 2021 6:29 pm

I know we all love government programs and as a matter of fact, our company has benefited greatly from the SBA backed funding of many of our deals.   However, the SBA loan incentive package that was presented in Jan through the CARES Act, has now been revised, and the SBA now says it will only pay for 3 months of P&I on new loans, and not 6 months.  It appears the rollback has occurred because of the limited funds based on the high demand…..duh!!  Anyway, they have rolled it back, but the the benefits are still substantial.   If you are thinking of acquiring a hotel asset using the SBA, there has not been a better time.

https://www.sba.gov/document/procedural-notice-5000-20095-adjustment-number-months-section-1112-payments-7a-504-microloan-programs-due-insufficiency-funds