2021 Stimulus Bill Means Significant Savings for Business Owners Who Get an SBA 504 Loan Before September 30, 2021

Exciting news for business owners considering buying, building, renovating, or refinancing a building for their business in the coming months – Any SBA loan that is approved prior to 9/30/21 will qualify for 3 months of payment subsidies as well as fee waivers, even if the loan is funded after that cutoff date. Taking advantage of 504 financing before this provision expires amounts to thousands of dollars in savings.

Payment Subsidies for 3 Months

Under the stimulus bill recently passed by Congress, all new SBA 504 loans approved between February 1 and September 30, 2021 will have their SBA loan payments paid by the SBA on their behalf for the first 3 months upon funding (up to $9,000 per month per loan).

Temporary Fee Waivers

For all new SBA 504 loans approved before September 30, 2021, the following fees are waived:

  • 0.5% Third Party Lender Participation Fee (charged on the bank’s portion of the loan)
  • 1.5% CDC processing fee (charged on the CDC’s portion of the loan)

Improvements to the SBA 504 Refi Loan

The recently passed stimulus bill includes several improvements to the SBA 504 Refi Loan, including broader eligibility guidelines, improvements to cash-out guidelines, and the following enhancements:

  • Qualified debt to be refinanced must be a minimum of only six months old, instead of two years old
  • Fee waivers and six months of payment subsidies, as described above