COVID-19 Resources

COVID-19 Debt Relief - SBA Covering 6 Months of Loan Payments for Small Business Owners

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COVID-19 Debt Relief - SBA Covering 6 Months of Loan Payments for Small Business Owners

Papers with "SBA Loan" written in bold is at the forefront. Calculators, notebooks, and pens are scattered in the background. Meant to depict small businesses owners apply for and getting SBA loans.

Brenda Krauss is a Senior Online Marketing Specialist for BizBuySell.com, BizQuest.com and FindaFranchise.com.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act has allocated $17 billion to subsidize loan payments for small businesses affected by COVID-19. Under the SBA Debt Relief Program, the Small Business Administration (SBA) will cover all loan payments, including principal, interest, and fees of new and existing loans for six months. The SBA will also encourage lenders to provide payment deferments when appropriate.

How to Get Debt Relief:

  • Debt relief is automatic for all eligible SBA loans. Under the new law, the SBA is directed to make payments within 30 days of the date on which the first payment is due
  • Check with a local SBA lender for additional details

Eligible Types of Loans:

  • Eligible loans include new and existing 7(a) loans, 504 loans and microloans
  • Those ineligible include Paycheck Protection loans and Economic Injury Disaster Loans, as payments are already deferred for these loans

Six Month Payment Period:

  • For existing loans made before the date the CARES Act was enacted (March 27, 2020), the 6-month period begins with the next payment due on the loan
  • For existing loans on deferment, the 6-month period begins after the deferment ends
  • For new loans made between March 27, 2020 and September 27, 2020, the 6-month payment begins on the first payment due on the covered loan

Loan Deferment:

  • The SBA is required to encourage lenders to provide payment deferments, when appropriate
  • The SBA is also required to encourage lenders to extend maturity of loans, so as to avoid balloon payments or any requirement for increase in payments resulting from deferments

The SBA Debt Relief Program is one of several federal relief programs for small businesses affected by COVID-19. Learn more about all the federal, state and local programs, as well as private sector programs


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Brenda Krauss is a Senior Online Marketing Specialist for BizBuySell.com, BizQuest.com and FindaFranchise.com.
Brenda regularly writes about small business trends, growth strategies and exit planning, and develops educational materials for entrepreneurship. She has over a decade of experience in marketing and communications for business, commercial real estate and financial services. In addition to writing, Brenda enjoys traveling abroad and exploring the outdoors.