The Small Business Administration (SBA) Debt Relief Program is part of the Coronavirus Aid, Relief, and Economic Security - CARES Act and is intended to help small businesses cope with the challenges they face during the COVID-19 crisis. The program provides immediate financial relief to businesses with new and existing non-disaster SBA loans.
The SBA Debt Relief Program provides small businesses with eligible SBA loans with immediate relief from loan payments. Under the program, the SBA will automatically pay all loan payments, including principal, interest, and fees for six months.
Eligible borrowers do not have to apply for this program as they will be enrolled automatically.
Only SBA 7(a) loans not made under the Paycheck Protection Program (PPP) are eligible for debt relief under this program:
The debt relief applies to current 7(a) loans as well as new loans that are issued before September 27, 2020.
Other Relief Programs:
The Paycheck Protection Program assists businesses with cash flow to cover their payroll costs during the COVID-19 crisis.
Under the Economic Injury Disaster Loan Program, eligible businesses can apply for an emergency grant of up to $10,000.
SBA Express Bridge Loans provide eligible small businesses that have been affected by the COVID-19 pandemic access to expedited SBA loans of up to $25,000.
How does the SBA debt relief program work?
Under the SBA debt relief program, businesses with eligible SBA loans are given immediate financial relief. The SBA automatically covers all loan payments, including, principal, interest, and fees for six months.
Who is eligible for the SBA debt relief program?
Businesses with new and existing 7(a) that were not made under the Paycheck Protection Program are eligible for debt relief.