The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic by paying six months of loan payments for new and existing borrowers. Below is a summary of the assistance.
As part of our coronavirus debt relief efforts, the SBA will pay 6 months of principal, interest and any associated fees that borrowers owe for all current 7(a), 504 and Microloans in regular servicing status as well as new 7(a), 504 and Microloans disbursed prior to September 27, 2020. This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. Borrowers do not need to apply for this assistance. It will be automatically provided as follows:
- For loans not on deferment, SBA will begin making payments with the next payment due on the loan and will make six monthly payments.
- For loans currently on deferment, SBA will begin making payments with the next payment due after the deferment period has ended and will make six monthly payments.
- For loans made after March 27, 2020 and fully disbursed prior to September 27, 2020, SBA will begin making payments with the first payment due on the loan and will make six monthly payments.
SBA has notified 7(a), 504 and Microloan Lenders that it will pay these borrower loan payments. Lenders have been instructed to refrain from collecting loan payments from borrowers. If a borrower’s payment was collected after March 27, 2020, lenders were instructed to inform the borrower that they have the option of having the loan payment returned by the lender or applying the loan payment to further reduce the loan balance after SBA’s payment.
To obtain an SBA 7(a) loan quote, contact a member of the ValueXpress team: Mike Sneden (email@example.com), Dennis Suh (firstname.lastname@example.org), Gary Unkel (email@example.com) or Jay Bhakta (firstname.lastname@example.org).