Sba Debt Relief

The SBA Debt Relief program provides financial reprieve to small businesses by paying 6 months of principal interest and any related fees that borrowers owe for all current 7 a and 504 loans SBA loans with a maximum of 5 million and Microloans in regular servicing status as well as new 7 a 504 and Microloans disbursed prior to September 27 2020.

Sba debt relief. The Consolidated Appropriations Act 2021 which was signed into law on Dec. Small Business Administration will automatically cover loan payments including principal interest and fees for a period of six months. The COVID Relief Act passed in December 2020 has reinstated the 6 months of loan forgiveness on new SBA loans funded between February 1st 2021 and September 30th 2021.

The new law extends SBA debt relief authority allowing the Administration to continue alleviating adverse economic effects of COVID-19 for small businesses with SBA loans. On Friday March 27 2020 the President signed into law the CARES Act which contains 376 billion in relief for American workers and small businesses. Since April last year the SBA has made over 71 billion in payments across 1819130 loans on behalf of these borrowers.

The duration of debt relief depends on several factors including when your loan was approved. Our nations small businesses are facing an unprecedented economic disruption due to the Coronavirus COVID-19 outbreak. 35 billion has been allocated for SBA debt relief payments on 7a and Microfinance Loans.

Please read below for more information. The new law extends SBA debt relief authority allowing the Administration to continue alleviating adverse economic effects of COVID-19 for small businesses with SBA loans. If you had a qualifying loan approved by the SBA prior to the CARES Act before March 27 2020 you will receive an additional three months of PI payments starting in February 2021.

Small Business Administration will automatically cover payments on eligible loans including principal interest and fees for a period of six months. If your regular SBA loan payment amount is greater than 9000 per month you will be contacted by your assigned EHPB loan officer to coordinate reconciliation of the payment amount that is not covered by the SBA during the payment relief period. According to its website the SBA debt relief program made more than 71 billion in payments in 2020 and those payments will continue through much of this year.

It was started with the first round of stimulus and extended in December 2020 with the second coronavirus aid package. The new law extends SBA debt relief authority allowing the Administration to continue alleviating adverse economic effects of COVID-19 for small businesses with SBA loans. The Small Business Administrations Debt Relief Program eliminates certain SBA loan payments for six months.