As part of SBA's debt relief efforts, under section 1112 of the CARES Act...
• The SBA will automatically pay the principal, interest, and certain fees of current 7(a), 504, and microloans for a period of six months.
• The SBA will also automatically pay the principal, interest, and fees of NEW 7(a), 504, and microloans issued prior to September 27, 2020.
A procedural notice by the SBA has full guidance:
The purpose of this Notice is to address the implementation of Section 1112 for the 7(a) and 504 Loan Programs. SBA addressed the implementation of section 1112 for the Microloan Program in a separate notice. See SBA Procedural Notice 5000-20015, effective 04/08/2020.
In accordance with section 1112(c), SBA will pay the principal, interest, and any “associated fees” that Borrowers owe on a “covered loan” in a “regular servicing status” to 7(a) Lenders and Certified Development Companies (CDCs) for a 6-month period. SBA will make these payments in accordance with the criteria and procedures described below.
1. A “covered loan” means a loan that is guaranteed by SBA under:
a. Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), including a loan
made under the Community Advantage Pilot Program. A “covered loan”
excludes a loan made under paragraph (36) of such section 7(a), as added by
section 1102 of the CARES Act; or
b. title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.),
(the 504 Loan Program).
>>> Read Entire SBA Procedural Notice
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