04/11/2020
With the recent enactment of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), there are now more opportunities than ever before for small businesses, as well as those of you looking to buy a business, to find some much-needed economic relief. One very important provision of this Act, SBA Debt Relief has great benefits for those that have purchased a a business with an SBA loan or are planning to (before Sept 27, 2020). As part of the SBA's debt relief efforts,
The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
In addition, the SBA is also providing additional debt relief for current SBA Serviced Disaster (Home and Business) Loans if your disaster loan was in "regular servicing" status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
If you would like to get more information pertaining to this provision, you can access the SBA website at
The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.