The SBA has directed lenders to advise SBA loan borrowers that they are eligible for debt-relief assistance under the CARES Act. Borrowers in the 7(a), 504 loan or Microloan program are eligible under the following guidelines:
- For a 7(a) loan, 504 loan or Microloan approved on or before September 27, 2020: The SBA will make your regular loan payments for up to a six-month period. The SBA began making these payments for certain loans in April 2020. If your loan was approved on or before September 27, 2020, but your loan was fully disbursed after September 27, 2020, the SBA will make these payments for up to a six-month period. If your loan has not yet been fully disbursed by your lender, the SBA will make these payments for up to a six-month period beginning with the first payment due after full disbursement. No single monthly payment that the SBA makes for these loans will exceed $9,000.
- For a 504 loan or a 7(a) loan that was approved before March 27, 2020: After the SBA completes making the loan payments for the six-month period described in the first bullet above, the SBA will make your regular loan payments for up to an additional three-month period beginning with the next payment due on or after February 1, 2021 (or beginning with the next payment due after any deferment period granted your loan). No single monthly payment that SBA makes will exceed $9,000.
- For a new 7(a) loan, 504 loan or Microloan approved beginning on February 1, 2021 and ending on September 30, 2021: Subject to availability of funds, the SBA will make your regular loan payments for up to a six-month period beginning with the first payment due on the new loan after full disbursement. No single monthly payment that the SBA makes for these loans will exceed $9,000. Your business is not eligible for this assistance on this new loan if your business has received (or will receive) debt relief on any other 7(a) loan, 504 loan or Microloan that was approved on or after March 27, 2020 and ended on September 27, 2020.
Relief is automatic. Contact your lender if the relief does not appear on upcoming loan statements.