SBA Extends Crucial Lifeline to Borrowers Impacted by COVID-19 with Debt Relief
WASHINGTON – As the U.S. Small Business Administration continues implementation of the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, signed into law by President Trump on Dec. 27, 2020, SBA Administrator Jovita Carranza made the following statement in regards to Section 325:
“Small business is big business in America, and this Administration will continue to extend a lifeline to small business owners during this critical time. Congress charged the SBA with making debt relief payments (principal, interest and fee payments) under Section 1112 of the CARES Act to help borrowers in SBA’s 7(a), 504 and Microloan programs; and now SBA is working expeditiously to implement the newly enacted assistance.
The new law extends SBA debt relief authority, allowing the Administration to continue alleviating adverse economic effects of COVID-19 for small businesses with SBA loans. Since April last year, the SBA has made over $7.1 billion in payments across 1,819,130 loans on behalf of these borrowers. It’s important to note that these firms were also initially able to access capital because of the SBA federal guarantee.”
The SBA is determining how much additional debt relief assistance can be provided to SBA borrowers with the newly issued Congressional appropriation. Debt Relief guidance will soon be posted on the SBA website.
Important Dates to Remember:
- Monday, January 11, 2021 – The new PPP will open for first-time PPP applicants
- Wednesday, January 13, 2021 – The new PPP will open to second-round PPP applications but only through community banks to give the underserved communities a head start
- Shortly after January 13, 2021 – PPP will open at National banks
- Wednesday, March 31, 2021 – PPP opportunity will close or until the money runs out
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