SBA Debt Relief For 7(a), 504 & Microloan Borrowers

FAQ#: 395 published 8-6-2020

As part of its coronavirus debt relief efforts, the SBA will pay six months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. Borrowers do not need to apply for this assistance. It will be automatically provided as follows:

  • For loans not on deferment, SBA will begin making payments with the next payment due on the loan and will make six monthly payments.

  • For loans currently on deferment, SBA will begin making payments with the next payment due after the deferment period has ended, and will make six monthly payments.

  • For loans made after March 27, 2020 and fully disbursed prior to September 27, 2020, SBA will begin making payments with the first payment due on the loan and will make six monthly payments.

SBA has notified 7(a), 504 and Microloan Lenders that it will pay these borrower loan payments. Lenders have been instructed to refrain from collecting loan payments from borrowers. If a borrower's payment was collected after March 27, 2020, lenders were instructed to inform the borrower that they have the option of having the loan payment returned by the lender or applying the loan payment to further reduce the loan balance after SBA's payment.

Borrowers should contact their lender if they have any questions regarding this payment relief.

Comment | Suggestion | Feedback

How do I know if my mortgage is federally backed or federally secured? COVID-19 Housing Assistance Program Appeals Process.

FAQ#: 460 published 1-13-2022 2 min. 50 seconds read

Read


Reconsideration of Declined Loan Applications SBA Economic Injury Disaster Loan (EIDL)

FAQ#: 235 published 4-23-2020 updated 1-4-2022 4 min. 48 seconds read

Read


Reconsideration of Declined EIDL add Personal Financial Statement Disaster Programs SBA Form 413D (03-18) to your document list.

FAQ#: 403 published 8-6-2020 updated 12-31-2021 1 min. 54 seconds read

Read


FEMA Resource for Substantially damaged homes

FAQ#: 384 published 4-25-2021 updated 12-31-2021 1 min. 27 seconds read

Read


Insurance company issued a two-party check for hurricane damage repairs but my mortgage handler is holding the money from me. Why are they doing this?

FAQ#: 455 published 12-30-2021 3 min. 44 seconds read

Read


What is a labor broker and how do they work?

FAQ#: 450 published 12-13-2021 1 min. 25 seconds read

Read


What would you normally find on a Schedule of Liabilities form?

FAQ#: 274 published 8-5-2020 updated 12-11-2021 2 min. 2 seconds read

Read


What does FEMA Federal Cost Share cover and does my state have to agree to pay the cost share?

FAQ#: 461 published 9-22-2021 updated 12-11-2021 3 min. 57 seconds read

Read


Disaster Unemployment Assistance (DUA) for Independent Contractors, Self-Employed and others is coming to an end but don't stop filing if you are unemployed.

FAQ#: 260 published 8-11-2021 1 min. 19 seconds read

Read


SBA proposed to remove provisions that currently make faith-based organizations ineligible for certain SBA disaster loans and other loan eligibility issues determined to violate the Free Exercise Clause of the First Amendment to the Constitution.

FAQ#: 442 published 8-10-2021 5 min. 38 seconds read

Read