7(a), 504 and Microloan Debt Relief
Below you can access information about federal, state, city and private resources in regards to coronavirus (COVID-19).
The Coronavirus Response and Relief Supplemental Appropriations Act extended the U.S. Small Business Administration's (SBA) 7(a), 504 and Microloan Debt Relief program for non-disaster SBA Loans. Under this initiative, the SBA will pay the first six months of principal and interest (P&I) for small businesses who apply for and receive a new 7(a), 504 or Microloan between February 1 and September 30, 2021, capped at $9,000 per borrower per month.
Starting in February 2021 the SBA will also cover P&I for an additional three months for small business borrowers with qualifying loans approved by the SBA prior to the CARES Act. After this three-month period, the following borrowers will receive an additional five months of P&I payments also capped at $9,000 per borrower per month: Borrowers with SBA microloans or 7(a) Community Advantage loans; and those with any 7(a) or 504 loan in food service and accommodation, arts, entertainment and recreation, education, and laundry and personal care service sectors.
Contact your small business lender directly regarding prospective debt relief available through this program.
We know navigating different COVID-19 relief programs can be challenging. The Pace University SBDC is here to help. Contact us to schedule a no-cost, one-on-one business counseling session.