What is the SBA Small Business Debt Relief Program?

The SBA Small Business Debt Relief Program was created to provide relief for small businesses hit hard by the coronavirus and resulting shut downs. The program provides automatic relief to small businesses for non-disaster SBA loans such as 7(a) loans, 504 loans, and Microloans.

What is a SBA 7(a) Loan?

A SBA 7(a) loan is a loan up to $5 million for borrowers who lack credit elsewhere and need access to financing. 7(a) loans provide short or long term working capital, the purchase of an existing business, refinancing of current business debt, or the purchase of furniture and supplies.

What is a SBA 504 Loan?

A SBA 504 loan provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets to expand or modernize the business. This financing covers assets such as buildings, land, renovations, furniture, equipment, and some soft costs

What is a SBA Microloan?

A SBA Microloan provides loans up to $50,000 to finance working capital, inventory, supplies, furniture, fixtures, machinery, and equipment.

How can the SBA Small Debt Relief Program Aid my Business?

The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and microloans as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. The relief is not available for Paycheck Protection Program loans and Economic Injury Disaster loans.

If a borrower paid after March 27, 2020, lenders were instructed to tell the borrower that they can have the loan payment returned by the lender or apply the loan payment to further reduce the loan balance after the SBA’s payment.

For free assistance with your small business needs, please contact the SBEC at businessclinic@elon.edu.