April 2020
Issue 34

504 Program COVID-19 Relief for Small Businesses

SBA 504 Effective Rates for April 2020

25-year3.03% / 3.03% Refi
20-year2.96% / 2.96% Refi
10-year2.85% / 2.85% Refi

Congress has passed a $2 trillion coronavirus relief/economic stimulus bill (the CARES Act). The Legislation includes the following provisions impacting the 504 Loan Program:

  • $17 Billion for SBA payment of borrower principal, interest, and fees for a 6-month period beginning with the next payment due, for 504 borrowers. This is not a deferment but is actual debt forgiveness on the 504 portion for the borrower. These SBA payments will be enacted by SBA automatically. There is a provision that states if a borrower is already on deferment, the CARES Act debt forgiveness payments will activate at the end of the deferment period. Loans made today, and within the next 6 months, will also have their principal, interest, and fees paid by SBA for 6 months starting with the first payment.


  • SBA’s payments are automatic and will not apply a debit on the borrowers’ ACH accounts.
    Borrowers who pay by check will have their checks mailed back to them.
  • The permanent suspension of the interim final rule on the Express Loan Program and Affiliation Standards, thereby suspending the personal resources test (highlighted in our last newsletter).


  • Borrowers are still able to request deferments on the 504 portion of the loan once the 6 months of automatic payments are over.

The Paycheck Protection Program was also approved under the CARES Act. This program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses. NWBDA is not authorized to process the Payroll Protection Program and will be referring applicants to their current lender for that program.

This is an ever changing situation, and new programs, grants and rules are still being implemented and changed. We will so our best to continuing relaying accurate and helpful information.

The NWBDA team wishes you well during these challenging times and thanks you for your support helping small businesses.


SBA Tip: If an Applicant has an approved IRS Installment Agreement, we will need to verify that this Agreement is in place and the Applicant is current with all payments.  SBA may ask for a copy of this Agreement and proof of current payments during the approval process.

Keep Supporting Small Businesses

Even with the many mandatory closures, you can still help support your local small businesses. Here are some examples:


  • Purchase Gift Cards.
  • Order Takeout or Delivery.
  • Purchase Products Online.
  • Refer People Directly.
  • Take Online Classes.
  • Post Positive Reviews.
  • Don’t Cancel Your Memberships.
  • Offer Support Services.
  • Opt for Local Businesses over Chains, when possible.

 Business Development Officers

Eastern Washington/
Northern Idaho

Evan Heriot

(509) 904-5169

Central Washington

Lisa Vincent
(509) 469-5040

Western Washington

Elizabeth Rusnak
(425) 286-6673

Mark Beppler
(425) 505-3263

Southwestern Washington/
North Oregon

Jim Bight
(360) 521-5704

Mike Miller
(503) 746-1805

March’s Loan Fundings

NWBDA funded 6 new
projects for the total amount
of $12,531,694.81

March’s Loan Approvals

NWBDA approved 6 new
projects for the total amount
of $11,976,631.00

In the month of March, NWBDA helped
create 24 new jobs
in the local communities

(509) 458-8555 (800)
540-1748 (Toll Free)

Achieving BIG Dreams for SMALL Businesses