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 Micro-loans. The program states that the SBA will cover all loan payments on these loans (including principle, interest, and fees) for six months. This relief is also available to small businesses who take out loans within six months of the CARES Act becoming law.
Who is eligible for this program?
Existing businesses who currently hold an SBA 7(a), SBA 504, or an SBA Micro-loan as well as small businesses who obtain a non-disaster SBA Loan such as the 7(a), 504, or micro-loan within six months of the CARES Act becoming law.
Can I use this benefit and apply for the SBA Paycheck Protection Program Loans?
Yes. Businesses can apply for the SBA PPL program separately, but debt relief does not apply to the PPL loans.
This 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.
Are there resource providers available to help me utilize the CARES Act Small Business Debt Relief Program?
Yes. Numerous resource providers will be available to assist you:
Your local financial institution where your existing SBA non-disaster loan was obtained