U.S. Small Business Administration Debt Relief Program
As part of the $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, the Small Business Debt Relief program has been enacted to provide immediate relief to small businesses with existing non-disaster Small Business Administration Loans, specifically, existing 7(a), 504, and Microloans. The Debt Relief Program is also available to small businesses who apply for and receive a new 7(a), 504 or Microloan prior to September 27, 2020. Below you will find information on the Debt Relief Program; however, SBA.com® is not able to provide any additional help with the U.S. Small Business Administration Debt Relief Program.
What is provided for under the Debt Relief Program?
Under the Debt Relief program, the U.S. Small Business Administration will automatically cover payments on eligible loans, including principal, interest and fees, for a period of six months.
- For existing borrowers with a 7(a), 504, or Microloans, the U.S. Small Business Administration will automatically cover loan payments including principal, interest, and fees, for a period of six months.
- For new borrowers, the U.S. Small Business Administration will cover loan payments, including principal, interest and fees, if the borrower applies for and receives a 7(a), 504, or Microloan prior to September 27, 2020.
Who is eligible for this program?
Businesses who currently hold a 7(a), 504, or Microloans, as well as businesses who obtain a new 7(a), 504, or Microloans prior to September 27, 2020, are eligible for the Debt Relief program. The 7(a) loan program is the U.S. Small Business Administration’s primary program for providing financial assistance to small businesses. 504 loans are made available through Certified Development Companies (CDCs), the U.S. Small Business Administration’s community based partners for providing 504 Loans. The U.S. Small Business Administration Microloan Program provides direct loans and grants to eligible non-profit microlenders.
How do I get Debt Relief?
It is best to check in with your lender directly to determine if you qualify under this program and to ensure payments are not missed. If you are eligible for this program, Debt Relief should be provided automatically by the U.S. Small Business Administration without you taking additional action. Under the CARES Act, the U.S. Small Business Administration is directed to begin making payments within 30 days of the date on which the first payment of an eligible loan is due.
Does this program apply to PPP Loans and EIDL Loans?
The Debt Relief program does not apply to Paycheck Protection Program (PPP) loans.
The Debt Relief program also does not apply to new Economic Injury Disaster Loans (EIDL), or Emergency Economic Injury Grants (EEIG).
However, for EIDL loans that were in regular servicing as of March 1, 2020, the Small Business Administration will provide automatic deferments through December 31, 2020. Note that interest will continue to accrue.
Can I receive debt relief and still be eligible for a PPP Loan?
Yes. Small businesses can still apply for a PPP Loan while receiving debt relief on eligible loans under the CARES Act. The application process for a PPP loan is separate from the Debt Relief program. You can request a PPP Loan through SBA.com® and we will refer your request to our partner. SBA.com® is not a lender and you do not have to request a loan through SBA.com® or its partner to access PPP funds.
Can SBA.com® help me access the Small Business Debt Relief program?
No. We can only provide you with the information contained on this page. If you have questions about your current loan and whether or not your loan is automatically deferred, The U.S. Small Business Administration recommends you contact your loan servicing office directly using the following information:
- Birmingham Disaster Loan Servicing Center:
- Phone: 800-736-6048
- Email: BirminghamDLSC@sba.gov
- El Paso Disaster Loan Servicing Center:
- Phone: 800-487-6019
- Email: ElPasoDLSC@sba.gov