SBA Update: Additional Debt Relief Assistance Approved through Economic Aid Act

Under the Economic Aid Act dated December 27, 2020, the U.S. Small Business Administration, has been authorized to provide additional assistance in the form of debt relief payments to eligible 7(a), 504, and Microloan borrowers. Business owners with eligible SBA loans approved on or before September 27, 2020 have been sent letters outlining their eligibility for additional assistance.

Under the Economic Aid Act, borrowers with loans approved between September 28, 2020 and January 31, 2021 are not eligible for debt relief payments. New loans approved from February 1, 2021 to September 30, 2021 are eligible for debt relief based on new eligibility rules and subject to SBA funding.

For additional information on debt relief payments and the implementation of these debt relief payments, please visit https://www.sba.gov/  .

A PDF of SBA's procedural notice regarding 7(a) and 504 loans can be found here https://www.sba.gov/sites/default/files/2021-01/Procedural%20Notice%2050...

 

And a second notice pertaining to SBA Microloans can be found here https://www.sba.gov/sites/default/files/2021-01/Procedural%20Notice%2050...