Covid 19 Current Borrowers


Current SBA 504 Borrowers

Stimulus Package #2:

Consolidated Appropriations Act

The 2021 Consolidated Appropriations Act, a $900 billion COVID relief package combined with $1.4 trillion government-wide funding, was passed by congress and signed into law. The COVID relief portion of the legislation includes many provisions for small businesses, including:

► Enhancements to 504 Refinance Program
► Temporary Fee Reduction for the 504 Loan Program
► Extension of CARES ACT payment subsidies for 504 loan payments
► New PPP Relief Program

We’ve summarized some of the key provisions below.

What you need to know about the new SBA 504 Refinance Program

More businesses are eligible:

  • The loan to be refinanced only needs to have been in place for 6 months, rather than 2 years
  • The 504 Program can now refinance SBA 7a loans
  • 12 months of current payments is no longer an eligibility criteria, it is reviewed as part of the credit decision

For borrowers with SBA 504 loans:

  • For one year from Dec. 27, 2020 borrowers can refinance the first trust deed and take cash out to be used for business needs, rather than exclusively used on their building
  • Total financing: up to 90% LTV when combined with the 504 second mortgage

Temporary Fee Reduction for 504 Program

  • Fee reductions for new 504 loans approved from the date of enactment of the new law (Dec. 27, 2020) through Sept. 30, 2021
  • Waives 0.5% Third Party Lender Participation Fee on loan in senior lien position in 504 project
  • Waives 1.5% CDC processing fee (in debenture pricing)
  • SBA guidance expected to address handling of all loans currently in process at SBA

Debt Forgiveness

On January 19, 2021 the SBA released implementation guidance surrounding the Economic Aid Act.  This Act appropriates $3.5 billion to extend the small business debt relief program established by the original CARES Act.

View the chart created by National Association of Development Companies (NADCO) that summarizes the different payments subsidies SBA borrowers can qualify for based on their date of loan approval.

For SBA loans approved prior to the CARES Act (March 27, 2020) borrowers received or are receiving:

  • 6 months of payment subsidies if loan was funded on or before Sept. 27, 2020 OR 3 months of payment subsidies if loan was funded on or after Sept. 28, 2020
    (Funded borrowers & borrowers coming off deferment may have already received or been allocated this relief under original CARES Act)
  • 2 months of payment subsidies starting Feb. 1, 2021, capped at $9,000 per loan per month
  • An additional 3 months of payment subsidies for loans to underserved (includes Community Advantage Loans and Microloans) or hard-hit industries, capped at $9,000 per loan per month

For SBA loans approved from March 27, 2020 to Sept. 27, 2020 borrowers received or are receiving:

  • 6 months of payment subsidies if loan was funded on or before Sept. 27, 2020 OR 3 months of payment subsidies if loan was funded on or after Sept. 28, 2020

For SBA loans approved from Sept. 27, 2020 to Jan. 31, 2021, borrowers do not receive payment subsidies.

Why? Congressional intent of the CARES Act is to provide relief to existing borrowers in place at the onset of the pandemic and to stimulate new loans that would not otherwise occur because of the pandemic.

For new SBA loans approved from Feb. 1, 2021 to Sept. 30, 2021 borrowers receive:

  • 3 months of payment subsidies, capped at $9,000 per loan per month (subject to availability of funds)


NAICS CodeIndustryNAICS CodeIndustry
61Educational Services485Transit, Rail, Bus, Taxi, Limo
71Arts, Entertainment, & Recreation487Scenic & Sightseeing Transportation
72Accomodation & Food Services511Newspaper, Books, etc. Publishing
213Support Activities for Minin512Motion Picture, Video, Sound Recording Industries
315Apparel Manufacturing515Radio & TV Broadcasting
448Clothing & Clothing Accessories Stores532Rental & Leasing equipment, consumer goods, etc.
451Sporting Goods, Hobby, Book, Music Stores812Personal & Laundry Services

SBA 504 Fact Sheet