The CARES Act allotted $17 billion to cover payments for companies already using SBA loans. This debt relief program covers 7(a), 504 and microloans funded through the SBA. However, it does not cover existing disaster loans or new PPP loan payments.
Under the small business debt relief program, the SBA will cover all loan payments for six months from the date the CARES Act was signed (including principal, interest, and fees). Relief is also available to new borrowers who take out qualifying, non-disaster SBA loans within six months of the act.
7(a), 504, and microloans offered by the SBA provide up to $5 million in funding for businesses who lack credit elsewhere.
If you already have an SBA loan, debt relief should be automatic. The SBA will automatically make payments on your behalf within 30 days of the date on which the payment is due.
However, it’d be wise to check in with your lender to see if SBA payments are coming through or if there is anything additional they need from you to speed the process.
SBA will automatically make payments within 30 days of the date on which the first payment is due.
SBA will cover all loan payments for six months (including principal, interest, and fees).