![]() Lenders are to report to SBA periodically on the amounts due once a loan is fully disbursed. SBA has notified 7(a), 504, and Microloan lenders that it will pay these borrower loan payments. For loans currently on deferment, SBA will begin making monthly payments with the first payment due after the deferment period ends for a total amount equivalent to no more than six months of installment payments.For loans not on deferment, SBA will make monthly payments based on the next payment due on eligible loans for a total amount equivalent to no more than six months of installment payments.All other provisions for initial debt relief remained the same.īorrowers need not apply for this assistance. SBA provides this assistance automatically as provided below: The Economic Aid Act revised the eligibility criteria for assistance to include all 7(a), 504, and Microloans approved up to September 27, 2020, even if not fully disbursed. These original provisions were amended on December 27, 2020, through the Economic Aid to Hard-Hit Small Businesses, Non-Profits and Venues Act (Economic Aid Act). This debt relief to borrowers was originally dependent on the loan being fully disbursed prior to Septemand does not apply to loans made under the Economic Injury Disaster Loan program. Market research and competitive analysisĪs a part of the CARES Act, SBA is authorized to pay six months of principal, interest, and any associated fees that borrowers owe for all 7(a), 504, and Microloans reported in regular servicing status (excluding Paycheck Protection Program loans).
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