I have a couple of questions regarding the recent federal legislation indicating that there will be another round of SBA loan debt forgiveness.

I have a company that is in the process of closing on two loans. However, to me, it isn't clear whether the $9,000 per borrower cap applies to the (1) entity or (2) the individual loans.

Any ideas?

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Posted by VABuckeye

NOVA

Member since Dec 2007

37486 posts

Posted on 1/7/21 at 2:17 pm to GentleJackJones

quote:
I have a company that is in the process of closing on two loans. However, to me, it isn't clear whether the $9,000 per borrower cap applies to the (1) entity or (2) the individual loans

What $9000 per borrower cap are you talking about? For the purposes of a loan you are limited to $100000 annual which translates to $8333.33 a month or $25000 for purpose of the total loan amount for that employee.

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Posted by LSUbase13

Mt. Pleasant, SC

Member since Mar 2008

15060 posts

Posted on 1/7/21 at 2:23 pm to VABuckeye

Are you talking PPP forgiveness?>

This post was edited on 1/7/21 at 2:24 pm

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Posted by VABuckeye

NOVA

Member since Dec 2007

37486 posts

Posted on 1/7/21 at 2:33 pm to LSUbase13

No but I have no freaking clue what he's talking about with forgiveness and $9000.

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Posted by Weekend Warrior79

Member since Aug 2014

19004 posts

Posted on 1/7/21 at 3:45 pm to GentleJackJones

Need more info about the type of loan you are referring to. SBA has 3 different types of loans that are being considered for forgiveness PPP, EIDL & 7(a), 504, and Microloans.

I do not know what loan has a $9k per borrower cap (EIDL was $10k), and the information about these potentially being forgiven is too new for most non-bankers to know the details.

In regards to the 7(a), 504, and Microloans, my understanding is the SBA will make 6 monthly payments, I have not seen anything about limitations (although I am sure there are some)

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