Please be advised that this is our interpretation of the COVID-19 SBA rules.
SBA debt relief efforts are incentivizing buyers to move ahead with business acquisitions. Right now, “the SBA will pay six months of principal, interest, and any associated fees that borrowers owe for all current … as well as new 7(a), 504, and microloans disbursed prior to September 27, 2020.”
This is a massive incentive. The SBA is covering (not deferring) your loan payments for six months. What’s more, they’re covering the loan fees. On a loan of $2 million, SBA fees could be about $138,125. That’s significant free money for buyers who move now and get their loan issued before the September 27 deadline.
As an added incentive, SBA lenders have the authority to defer loan payments for six months. That means some buyers could acquire a new business and have a full year of payment free operations ahead.
