Small Business Debt Relief Program

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Within the CARES Act, the Small Business Debt Relief Program provides immediate debt relief to small businesses with non-disaster SBA loans, specifically SBA 7(a), SBA 504, and SBA microloans in regular servicing status as well as new loans disbursed prior to September 27, 2020. The program states that the SBA will cover all loan payments on these loans (including principle, interest, and fees) for six months.

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.

Existing businesses who currently hold an SBA 7(a), SBA 504, or an SBA microloan, as well as new loans disbursed prior to September 27, 2020.

7(a)’s are an affordable loan product from the U.S. Small Business Administration up to $5M. These loans are used primarily for access to versatile funds, such as working capital. Click here to learn more about various 7(a) loan programs. To find a participating local financial institution to apply, click here to visit the SBA Lender Match Program.

It is a U.S. Small Business Administration program that provides loans up to $50,000 to enable small businesses to startup or expand. Micro-loans are deployed through mission-based lenders that can be located by visiting the SBA Lender Match Program.

Yes. Your local financial institution, where you got your existing SBA non-disaster loan, can help you.

Need help? Contact your SBDC advisor. Request advising here.

Virginia SBDC