CARES Act Impacts SBA 7(a) Loans

While there are several SBA loan related provisions and benefits in the recent government actions designed to create relief to the current COVID-19 situation, one in particular – the SBA Debt Relief program – is what we’d like to focus on.

This is taken today from the SBA.gov website (https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-4):

The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis. Under this program:

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

This is significant news for both business owners that currently have an SBA 7(a) loan, and prospective business buyers considering an SBA 7(a) loan for their acquisitions.

If you currently have an SBA 7(a) loan, we’d suggest reaching out to your bank to get more information about this new ruling.

If you are considering an SBA 7(a) loan to make an acquisition and would like to speak with an SBA loan specialist, please let us know and we’ll be happy to put you in touch with multiple lenders who can help you.

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Scot Cockroft Business Broker
Hi, I’m Scot Cockroft.

When I founded Sigma Mergers and Acquisitions back in 2003, I had sold my business the year prior.

Now, that can sound good, but let me tell you, back in 2003, it was not easy to sell a business. Not that I’m saying in modern day times it’s easy to sell a business, but back then I interviewed broker after broker after broker, and no one was interested in actually seeing the value that my business brought to the table.

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Sigma is a the leading business broker in with Corporate offices in Dallas/Fort Worth with roots from 1984. Over 600 businesses sold in Dallas, Fort Worth, Texas, Oklahoma and across the South. Sigma provides full business brokerage services with NO upfront fees. We provide Market approach business valuations for business sales. Sigma is passionate about helping business owners achieve their goal of financial security. Contact us today for a free no obligation business valuation. We are here to help you achieve your goals.

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