On December 21, 2020, Congress passed H.R. 133, the Consolidated Appropriations Act for 2021. It was signed into law on December 28th. The Small Business Administration (SBA) is expected to provide guidance on the Act’s SBA provisions in the coming weeks. We will provide updates as information becomes available, but a summary of the sections of the law impacting small business can be found here.

This $2.3 trillion package funds the federal government for FY2021 and several COVID-19 initiatives focused on small business relief, including:

  • An extension of SBA borrower payments provided under the CARES Act
  • Temporary elimination of certain SBA 504 fees
  • Enhancements to the SBA 504 Refinance program
  • The creation of the PPP second draw – providing for the hardest hit businesses to access a second forgivable PPP loan
  • Simplifying the loan forgiveness process for borrowers with PPP loans of $150,000 or less
  • Clarifying that forgiveness of certain loans, emergency EIDL grants, and SBA loan repayment assistance, provided by the CARES Act, shall be considered non-taxable income

This federal aid for small businesses is a welcome development to end the year. The SomerCor team is ready to work with our small business clients and lending partners to support the country’s economic recovery through the SBA 504 program.

If you have questions about the SBA 504 program, SomerCor is here to help. Feel free to contact a member of our team directly:

Brian Comiskey
Chief Lending Officer
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Elisabeth Williams
VP, Loan Officer
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Eric Bacon
VP, Loan Officer
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Joseph Bailey
AVP, Loan Officer
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