Small businesses now have more financial help from the Small Business Administration.
- SBA debt relief extension: New and existing 7(a), 504, and microloans from the agency will receive an additional three months of principal and interest relief, capped at $9,000 per borrower per month, starting in February. The hardest-hit businesses will receive an additional five months of relief.The SBA will also cover the principal and interest payments on new loans approved between Feb. 1 and Sept. 30, 2021, also capped at $9,000 a month.
- SBA guarantees: The SBA will increase its loan guarantee from 85% to 90%, making the loan more attractive to lenders. The legislation also waives borrower and lender fees on 7(a) and 504 loans to entice borrowers and lenders alike.
- More funding: $25 million for the Minority Business Development Agency’s Minority Business Development Centers program to help minority-owned small businesses respond to Covid-19 and help them access additional government assistance.