New SBA Loan Updates: Sept. 2021

A flurry of Small Business Administration (SBA) activity this year has kept lenders, businesses, and other stakeholders busy with following the nuances of fast-paced changes related to COVID-19 regulations and legislation. In a new development, this September 30 we saw the expiration of many enhancements that have gone into effect since the onset of the pandemic:  

  • SBA discounted loan guaranty fees to zero. Typically these fees can be as much as 3 or 3.5%, so this can make a considerable difference to your bottom line. 
  • SBA offered up to 3-6 months of payment relief.   
  • Under the SBA Express Program, maximum guaranty percent increased from 50% to 75% for loans of $500,000 or less.  

All of these relief measures ended September 30, 2021. Additionally, during the period of February 1, 2021–September 30, 2021, larger SBA loans were guaranteed up to 90% of the loan amount as part of the COVID SBA program enhancements. After September 30, 2021, SBA reduced the loan guaranty back down to 75%. 

At this point, it’s unclear whether these enhancements will be extended or not. There’s a general expectation that there might be more support, particularly with an eye to the $3.5 trillion bill in dispute right now. However, any definitive confirmations have yet to emerge from within the industry.  

Throughout the pandemic, we’ve seen several new trends related to SBA loans, including an increase in business acquisitions. As more companies have changed hands from one owner to another, we’ve also seen a corresponding rise in business valuations.

Despite the rapid-fire changes related to COVID-19, the SBA 7(a) Loan Program has been around for years. With over 30 years of experience working with the 7(a) Program, Northspan’s approval rate for our SBA 7(a) loan clients is close to 99%.  

We work closely with SBA applicants, typically contracting with a lender, or sometimes with a client of the lender, to package loans for the 7(a) Program. We also offer a third tier option where we provide packaging assistance and overall technical assistance on an hourly basis. In this case, Northspan staff will handle all the details related to completing forms, submitting the application to SBA, and final approval follow up under our packaging services. You can learn more about our SBA 7(a) Loan Guaranty program services here.  

If you would like to find out whether your loan might fit with the program or not, or gauge your chances of getting approved for a 7(a) loan, don’t hesitate to get in touch with Northspan’s SBA contacts Bob Palmquist at and Amanda Vuicich at We’re happy to talk through the process and help determine whether an SBA loan could be the right fit for you and your business.