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  • #211 Reply

    Nick Cribb
    New Information on Keeping Workers Paid and Employed Act

    We finally have our first glimpse of Congress’s Keeping Workers Paid and Employed Act. What an unusual time to be in SBA lending! I hope that this will pass and become law in the next two to three weeks. Here are the highlights:

    $300 billion in SBA 7(a) loans
    100% government-guarantees through 12/31/20, then reverts
    Up to $10MM in loan size
    Currently eligible SBA borrowers AND not-for-profits
    Borrowers can get this loan OR a Disaster loan, not both
    Waives borrower and lender guarantee fees
    Provides a “process” by which borrowers will be eligible for loan forgiveness in an amount equal to their payroll cost and costs related to debt obligations for the period between 3/1/20 and 6/30/20 – amount of forgiveness will be reduced proportionally by the number of employees laid off during this time, excluding employees making in excess of $100k in this calculation
    Lenders must verify payroll costs

    If the small business borrower is applying for a disaster loan, they will not be eligible for the above SBA 7(a) loan. They can do either/or but not both.

    These loans can be used to refinance your own bank debt and give the Small Business much needed working capital!
  • #235 Reply

    Scott Blankenship

    Great information Nick. Thank you.

  • #251 Reply

    Jeff Victory

    Thanks for the information Nick! Hope everyone is doing well.

  • #294 Reply

    Kenny Adams

    Nick thanks for the update can you shed some light on the difference between and sba and disaster loan

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