SBA Debt Relief Program

This page will be updated continuously to reflect the most recent information. This page was last updated on May 20, 2021.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided immediate relief to small businesses with SBA 7(a), 504 and microloans, by requiring SBA to cover all loan payments including principal, interest and fees for six months. This relief is also available to new borrowers taking these loans before September 27, 2020. The SBA debt relief program does not cover Paycheck Protection Program loans.

What are SBA 7(a), 504 and microloans?
SBA 7(a) loans: An SBA 7(a) loan is a loan of up to $5 million for borrowers who cannot find credit elsewhere and need short-term or long-term working capital, who may need to refinance debt, purchase furniture, purchase an existing business or buy fixtures and supplies. There are several types of 7(a) loans, which borrowers can apply for through a bank or mission-based lender. To find a 7(a) loan that works for you, please go to SBA’s website, here.

SBA 504 loans: An SBA 504 loan that provides up to $5.5 million to qualifying small businesses with long-term, fixed-rate financing for fixed assets such as real estate, buildings and machinery. Borrowers apply for SBA 504 loans through a Certified Development Company (CDC) – a non-profit corporation that promotes economic development initiatives. To find a CDC near you, use the SBA’s locator tool, here.

SBA microloans: An SBA microloan is a loan that provides up to $50,000 to help small businesses and certain non-profit childcare centers start and expand. These loans are delivered through mission-based lenders, called intermediaries, that also provide technical assistance and business counseling. To find a microloan intermediary serving Illinois, click here.

How do I get debt relief?
Debt relief should be automatic, but borrowers should check with their lender to be sure. The CARES Act required SBA to make payments within 30 days of the first payment coming due.

Additional Information:
If borrowers have any additional questions on SBA loan programs and SBA debt relief, please visit the SBA’s website here.