Important Info Regarding SBA FY 2021 Funds Availability

Important Info Regarding SBA FY 2021 Funds Availability

To our lending partners & borrowers:

Capital Matrix, along with all others in our industry were recently made aware that the SBA is reaching its SBA 504 limit of $7.5 billion in approvals allocated to the program for regular applications and refinance with expansions for the fiscal year 2021. The new fiscal year starts October 1st and there will be a new allocation for fiscal year 2022. It is estimated that the FY2021 limit will be reached by September 5th, based on the 600+ loan applications currently at the SBA. The SBA still has funds available for the SBA 504 refinance program without expansion through fiscal year 2021.

This means that while we can still obtain internal approval and submit applications to the SBA for regular 504 and refinance with expansion loans, the SBA will not be able to approve any applications until October 1st, 2021 which will be without the fee relief.

Despite the elimination of fee relief to borrowers, the SBA 504 program is still a very attractive program with low, fixed & fully amortized rates, and a minimum of 10% injection.

Elimination of fee relief will bring the SBA 504 program back to its pre-fee relief status. To see how this could affect your borrower, please see the chart below.

 Fee Relief (Ending 9/5/2021)Post Fee Relief
CDC Processing Fee (on the 504 loan)1.15%2.65%
Bank/C.U. Participation Fee (on the banks portion of the loan)0%.5%
SBA 504 Payments covered by SBA3 Months0 Months

Our team has been working hard to ensure as many borrowers receive the fee relief before funds run out, and will continue to work hard to provide the same excellent SBA 504 experience that has made us the SBA 504 CDC of the year in Idaho for 20+ years.

We thank you all for your continued support of the program and will keep you updated on any additional information we receive.