January 22, 2021 5:02 pm
On January 19th, the SBA released its guidance pertaining to Section 1112 of the Coronavirus Relief Act. The link to the SBA Procedural notice (within the SBA.gov website) is as follows:
This document describes the procedures to be used with the 7(a) and 504 SBA loan programs. It is a complex document to be used by lenders in determining eligibility and payments under the program.
For current borrowers who have an SBA loan, you should call your lender to determine eligibility. There are very attractive benefits for many borrowers, especially for those in the hotel business. For the purpose of this article, I won’t go into the benefits here, because of the existing nature of the loan.
Those benefits include payment by SBA of 6 months of principal and interest payments (subject to limits). Depending on the loan, there is also payment of loan guarantee fees. The timeline window (right now) for new loans begins Feb 1, 2021 and runs until Sept. 30, 2021 (subject to the availability of funds).
With the recovery of the economy in sight, the new relief packages certainly will enhance the appeal of owning a hotel, especially for those who are owner operators.
The following is the PDF version of the link above:
Please call any of our experienced brokers to discuss the process. Also check back in a few days, as there will be several blog posts about obtaining that financing for your new acquisition.