7(a) Debt Relief Program
Overview
The Debt Relief Program provides immediate relief for new and existing borrowers of SBA's regular loan guarantee programs.
For existing borrowers with a regular 7(a), 504 or micro-loan, SBA will automatically make payments on your behalf for
a period of six months. For new borrowers, SBA will automatically cover payments due prior to September 27th, 2020.
Am I eligible?
You are eligible if:
You have an SBA 7(a), 504, or micro-loan loan (Paycheck Protection loans and SBA disaster loans
are not eligible—but payments are already deferred under those loans);
You apply for and receive an SBA 7(a), 504, or micro-loan within six months of enactment of the CARES Act.
To check if you are eligible for an SBA 7(a), 504, or micro-loan, please visit www.sba.gov.
Where do I apply?
Debt relief is automatic, but you should check in with your lender. Under the new law, the SBA is directed
to make payments within 30 days of the date on which the first payment is due.
Pro Tips
While you cannot "double dip," (i.e. use the proceeds for the same expenditures), we strongly encourage
small businesses to apply for both the PPP and EIDL loans simultaneously. You can always decline the EIDL.
Due to the unprecedented demand for the PPP and EIDL programs, we strongly recommend applying
for the programs as quickly as possible. Applications will be processed on a first-come first-serve basis.
Banks will likely assist their current customers first with PPP loans. Contact your local bank or credit union
to determine if they are an SBA-certified lender. If not, visit www.sba.gov/paycheckprotection/find
for a list of SBA lenders.
If you do not accept an approved EIDL loan, you have six months to change your mind.
/www.sba.gov
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/www.sba.gov
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