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

Vermont District Office  - May 19, 2020

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

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.

Visit Small Business Assistance Website

Since the implementation of the Paycheck Protection Program April 3, the Small Business Administration and the Department of Treasury have made several updates to the program. For example on May 13, a rule change allows seasonal small businesses that received a Paycheck Protection Program loan to increase their loan amount based on a revised calculation.

To stay up to date, frequently visit the Small Business Assistance website here.

PPP, EIDL Daily Webinar

In response to the COVID-19 pandemic the SBA Vermont District Office is hosting a free daily webinar from 9 to 10 a.m. Monday to Friday to discuss  Paycheck Protection Program, the Economic Injury Disaster Loan and Advance, and any pertinent updates. 

To join the webinar, visit https://meet.lync.com/sba123/sbmazza/6F6N4YK6.

To join by phone, call (202) 765-1264 and when prompted enter the code 470177937#. Upon joining the call, mute the phone to cut down on the background noise and please do not place the call on hold as the hold music will be heard over the presenter.

For more information, email susan.mazza@sba.gov