The Coronavirus Aid, Relief and Economic Security (CARES) Act, a $2 trillion economic stimulus bill aimed at providing relief for individuals and small businesses went into effect, and with it came relief for SBA borrowers.
What does this mean for SBA customers?
Debt Relief for Existing and New SBA Borrowers ($17 billion): Under this provision the SBA will cover all loan payments for existing SBA borrowers (including principal, interest and fees) for six months. This will happen automatically and does not require any application.
While SBA borrowers are receiving this relief they may still apply for a Paycheck Protection Program loan that provides capital to keep their employees on the job.
Below are two clickable documents provided by the SBA that provides Small Businesses with an Overview of the CARES Act along with Frequently Asked Questions.