The CARES Act (PL 116-136) contains several provisions to assist existing SBA 7(a) borrowers.
- The CARES Act relieves borrowers of any obligation to pay the principal, interest, and associated fees owed on a 7(a) loan in regular servicing status for 6 months;
- The time period begins with the first payment due on the loan after March 27, 2020. The SBA will pay this payment;
- If the borrower makes the payment to the lender after March 27, 2020, the lender is required to inform the borrower that the borrower has the option to have the payment refunded or applied to reduce the existing loan balance.
If you have a questions about the CARES ACT or issues affecting your current loans in this crisis, contact Allen Stahl + Kilbourne
Updated: April 1, 2020
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