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, 13 May, 2020

The Cares Act Cash Windfall you Missed!

Did you know the US government will pay the first 6-months of payments on commercial loans from 300k to five million dollars, should it meets specific guidelines and closes before Sept 27th, 2020.

The best part – you don’t have to pay them back! The opportunity is separate from the Paycheck Protection Program loan or Economic Injury Disaster Loan, but the commercial loan program is part of the CARES Act. The SBA’s website states, payments are expected to automatically start for all current 7(a) 504 and microloans. New loans distributed before September 27th, 2020, also qualify for the program. If your lender collected a payment after March 27, 2020, you have the option to have the loan payment returned or apply it to the loan and further reduce the loan balance after the SBA’s payment.

Here are some estimates to save on commercial loans, if the government paid and forgave 6-months of loan payments:

CaresAct pays commercial loans
Commercial Property
  • 300k – $11,500 – $19,900
  • 500k – $19,300 – $33,300
  • 1m – $38,600 – $66,600
  • 3m – $115,900 – $199,800

The best-case scenario is you may not have to start making payments until April 2021. In years passed, learning that the government would pay your commercial real estate payments would have sounded like a scam, but this is real. It is a rare chance for small to medium companies. 

Some people who are walking through the commercial loan program think it may be the difference between breaking even and making a profit this year. For others being able to take advantage of the program to grow in their market is beyond what would have otherwise been possible. 

This program is allowed to be used to:

  • purchase buildings or refinance
  • buy out a partner or buy a business
  • have the working capital to expand
  • purchase equipment 

Examples of potential projects:

  • office buildings, medical physician or dentist offices
  • storage units, warehouses, or factories
  • working capital for inventory, expansion, and remodeling
  • equipment for increased production or replacements to boost efficiency.
Cares Act pays commercial loans

In some cases, it may make sense to refinance higher-rate commercial loans and get new lower rates or better terms. It is a unique opportunity. 

The chance of qualifying is low if you make the mistake of getting in the wrong line or choosing the lender that fails to move fast enough for you to take advantage of this program. It is vital to navigating the process precisely to qualify for the program. 

We’ve heard horror stories from clients with their attempts to get applications done on their own or with lenders they were sure would take care of them, but fail in reality. 

We have closed an average of 6.2 PPP loans per day over the last ten business days alone. Ensure you catch this windfall and reach out to a CPA firm to help you that is experienced in these areas. 

We help clients file other business loans daily. We are confident that we can help you or your clients with this program. Give us a call at 801-616-3864 with any questions.

For more information check out the SBA’s website at


Note: The material and contents provided in this article are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

Ed Gabriel is President and Partner at DrillDown Solution. With over 20 years of experience, he holds a bachelor's degree in accounting from Brigham Young University and is a Certified Public Accountant (CPA).