Small Business Administration Loan Relief

The recent bill passed for additional Coronavirus relief includes some help for SBA Loan borrowers.

“The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” (Economic Aid Act), provides additional relief to support certain SBA Loan borrowers. Under this act, the SBA will pay principal, interest and associated fees for qualifying loans. 

How does the Economic Aid Act program work?

The latest relief requires the SBA to pay the principal, interest and associated fees owed on loans which were in repayment prior to the passing of the CARES Act on March 27, 2020, for a three-month period starting February 1, 2021. Those payments will be capped at $9,000 per borrower, per month. After the three-month period, borrowers considered to be underserved—namely the smallest and hardest-hit by the pandemic—will receive an additional five months of principal, interest and associated fees, also capped at $9,000 per borrower, per month. Finally, the SBA will resume paying principal, interest and associated fees on the first six months of all eligible loans approved between February 1, 2021 and September 30, 2021, also capped at $9,000 per month.

What SBA Loan borrowers are included?1

  • Borrowers with SBA microloans or 7(a) Community Advantage loans 
  • Borrowers with any 7(a) or 504 loan in the hardest-hit sectors since the start of the pandemic, as measured by the severity of sector-wide job losses, including all those belonging to 2- and 3- digit NAICS categories with the most severe job losses: accommodation and food services (72); arts, entertainment, and recreation (71); educational services (61); mining and logging (213); apparel (315); clothing and clothing accessory stores (448); sporting goods, hobby, book, and music stores (451); air transportation (481); transit and ground passenger transportation (485); scenic and sightseeing transportation (487); publishing industries, except Internet (511); motion picture and sound recording industries (512); broadcasting, except Internet (515); rental and leasing services (532); and personal and laundry services (812).  

What are the additional modifications specific to the SBA 7(a) Loan Program?

Currently, the following is being provided for increased guarantees and increased Express Loan size:

  • Increases the loan guarantee amount on 7(a) loans, including for Community Advantage loans, to 90 percent until October 1, 2021. 
  • Increases the Express Loan amount from $350,000 to $1 million on January 1, 2021, and then reverts permanently to a lower amount of $500,000 on October 1, 2021. The Express Loan guaranty amount for loans of $350,000 and less is temporarily increased from 50 percent to 75 percent, and for loans above $350,000 the guarantee remains at 50 percent. On October 1, 2021, the guarantee reverts to 50 percent for all Express Loans. 

What if my loan is currently setup for automatic payments?

We have suspended all automatic payments for SBA loans effective February 1, 2021.

What if I already made my February payment?

Contact your local banker to obtain a refund of the payment.

What if I wish to continue making my payments as usual despite the SBA payments?

These payments will count toward the principal balance of your loan.



The above information may change depending on SBA Procedural Rule and Guidance Changes

If you have any questions or concerns, we encourage you to contact your local banker.


1This list is subject to change depending on guidance from the SBA.