Does anyone have clarity on Cares Act changes to SBA 7A acquisition loans?

by a searcher from The University of Auckland - The University of Auckland Business School

4 years ago

I understand  no repayments or interest for 6 months but any changes to SBA guarantee amount (90%?), removal of personal guarantee requirement or other changes?  I understand 6% is now maximum allowable interest on loans?  Thanks.

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lender from Michigan State University - The Eli Broad College of Business

As far as I've heard, the CARES Act does not help acquisitions.. It's for working capital and payroll on currently owned businesses. Regarding the rate ceiling, it's always Prime + 275 for long-term loans, so that's currently 6%. The regular 7a program still has all of the same rules and guarantor requirements.

3 years ago | like reply | 0 likes

searcher from Brigham Young University

The following was helpful for me on this specific topic:
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief

3 years ago | like reply | 0 likes

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