SBA shortens period for relief payments

The SBA issued new guidance adjusting the number of months of 7(a), 504, and Microloan payments it is making for borrowers under Section 1112 of the CARES Act, as amended by Section 325 of the Economic Aid Act.

Procedural Notice 5000-20095 says SBA has determined that the $3.5 billion in funds is insufficient to pay for the six months of payments authorized by the laws. Instead, the guidance includes a plan to proportionally reduce the number of months provided for each category of loans, effectively immediately.

More: Additional PPP information and resources are available on the SBA and Treasury sites and ICBA's PPP and EIP News page.