SBA Loan Enhancements: What You Need to Know

In 2021, Springtree Group’s clients have a once-in-a-lifetime opportunity to benefit from the limited-time highly enhanced SBA loan programs. Designed to boost the economy during the pandemic, the 2021 Economic Aid Act has given Springtree Group added power to financially support our buyers in their agency financing and acquisition activities.

The new enhancements include the following:

  • Zero SBA guaranty fees
  • SBA will pay up to $9,000 in principle and interest per month for 6 months on your SBA loan. This money will not need to be repaid
  • Working capital can be covered in these loan amounts
  • Loans approved by 9/30/2021 will benefit from the aforementioned benefits as soon as the loan is fully disbursed. Availability of funds cannot be guaranteed, so it’s urgent that you contact us if you are searching for an agency to buy this year. We want every eligible client to take advantage of this incredible opportunity for funding your agency’s development.

If you were authorized for an SBA loan that was approved last year (assigned a loan number) prior to March 27th, and it was not fully disbursed by September 27th AND you did not benefit from the first round of subsidies, you are now eligible to receive payments on the first round of disbursements. However, if your loan was approved after September 27th and before the new rules took effect on January 31st of this year, you are not eligible for this subsidy payment.

Springtree Group’s expert team of financial advisors are standing by, prepared to assist our buyers with this new SBA loan process. We have new agencies listing with us every week, so continue to read through our Agency Alerts newsletters as they arrive. If you see an agency you are interested in, please move quickly to inform us. The independent insurance space has already been busy this year, and we anticipate that this new legislation will further accelerate the pace of transactions.