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If you had an SBA loan prior to COVID-19, there are debt relief options

(BUSINESS FINANCE) If you, like many other people right now, have questions about SBA microloans, then look no further. Here is an intricate look at what those are and mean.

SBA microloans

As the Small Business Administration’s Paycheck Protection Program (PPP) is finalized, many don’t know that the SBA has other types of debt relief. If your business currently has a 7(a), 504 or microloan, you may qualify for help with payments, but it’s not automatic. According to the SBA website:

As part of 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.

What to know:

  • Your SBA loan must be current.
  • Loans made under the PPP are not eligible for this debt relief.
  • If you have automatic payments made to your SBA loans that qualify for this program, you have to manually cancel the payments. When the time period expires, you will have to resume making payments.
  • This debt relief program applies to new SBA 7(a), 504 and microloans that are not made under the PPP.

Current SBA Business Serviced Disaster loans are also eligible for deferment payments through December 31, 2020. This means that no payment is due, but interest will continue to accumulate.

Been denied for PPP or EIDL?

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Congress has approved more funding, but the rollout has been slow. Check out these coronavirus relief options for small businesses to get help to keep your business going until America reopens. If you have a current relationship with an SBA Express Lender, you may be eligible for an Express Bridge Loan.

You can find SBA resource partners to help you apply for loans at here. Contact your lender to help you manage your current SBA loan.

As always, we got your back with multiple stories concerning every thing you need to know about the SBA loans and other assistant programs.

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Dawn Brotherton is a Sr. Staff Writer at The American Genius with an MFA in Creative Writing from the University of Central Oklahoma. She is an experienced business writer with over 10 years of experience in SEO and content creation. Since 2017, she has earned $60K+ in grant writing for a local community center, which assists disadvantaged adults in the area.

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