SBA Updates

ALL existing SBA 7(a) loans approved by SBA before March 27, 2020 will get 3 more months of payments (February 1, March 1, and April 1) made by SBA. The payments will be subject to a $9,000 cap per loan.

• Resumes the payment of principal and interest (P&I) on small business loans guaranteed by the SBA under the 7(a), 504 and Microloan programs, established under Section 1112 of the CARES Act.
• Provides that all borrowers with qualifying loans approved by the SBA prior to the CARES Act will receive an additional three months of P&I, starting in February 2021. Going forward, those payments will be capped at $9,000 per loan.

ALL existing SBA 7(a) loans approved by SBA before March 27, 2020 will get 5 more months of payments on top of the 3 mentioned above (May 1, June 1, July 1, August 1, and September 1) made by SBA, if their business has a NAICS code mentioned below. The payments will also be subject to a $9,000 cap per loan.  

• After the 3-month period described above, borrowers considered to be underserved – i.e., the smallest and hardest hit by the pandemic, will receive an additional 5 months of P&I payments, also capped at $9,000 per loan per month. 
• These include:
• Borrowers with SBA microloans or 7(a) Community Advantage loans
• Borrowers with any 7(a) or 504 loan in the hardest hit sectors, as measured by the severity of sector-wide job losses since the start of the pandemic, including all those belong to 2 and 3 digit NAICS categories with the most severe job losses since the start of the pandemic:
  • Accommodations and food services (72)
  • Arts, entertainment, and recreation (71)
  • Educational services (61)
  • Mining and logging (213)
  • Apparel (315)
  • Clothing and clothing accessory stores (448)
  • Sporting goods, hobby, book, and music stores (451)
  • Air transportation (481)
  • Transit and ground passenger transportation (485)
  • Scenic and sightseeing transportation (487)
  • Publishing industries, except internet (511)
  • Motion picture and sound recording industries (512)
  • Broadcasting, except internet (515)
  • Rental and leasing services (532)
  • Personal and laundry services (812)
• If SBA projects that appropriations provided for the debt relief program are insufficient to fund the extensions provided, the Administrator may proportionally reduce the number of months provided in each extension.
• If your monthly loan payment exceeds $9,000, your Legence Bank Servicing Officer will contact you to discuss how billing will be handled for the excess amount.
• In summation, if all funds are exhausted – all payments may not be made to the borrower.