SBA Debt Relief

SBA Debt Relief

Updated April 14, 2020


As part of SBA's debt relief efforts,

  • The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
  • The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020 for a period of 6 months.



Businesses who currently hold a 7(a), 504, or Microloans, as well as businesses who obtain a new 7(a), 504, or Microloans prior to September 27, 2020, are eligible for the Debt Relief program. The 7(a) loan program is the Small Business Administration’s primary program for providing financial assistance to small businesses. 504 loans are made available through Certified Development Companies (CDCs), SBA’s community based partners for providing 504 Loans. The SBA Microloan Program provides direct loans and grants to eligible non-profit microlenders.



If you are eligible for this program, Debt Relief should be provided automatically by the Small Business Administration without you taking additional action. Under the CARES Act, the Small Business Administration is directed to begin making payments within 30 days of the date on which the first payment of an eligible loan is due.


How does this program apply to PPP Loans and EIDL Loans?

The Debt Relief program does not apply to Paycheck Protection Program (PPP) loans. The Debt Relief program also does not apply to new Economic Injury Disaster Loans (EIDL), or Emergency Economic Injury Grants (EEIG). However, for EIDL loans that were in regular servicing as of March 1, 2020, the Small Business Administration will provide automatic deferments through December 31, 2020. Note that interest will continue to accrue. Small businesses can still apply for a PPP Loan while receiving debt relief on eligible loans under the CARES Act. The application process for a PPP loan is separate from the Debt Relief program.


SBA UPDATES: With the updates and changes to law coming rapidly and often, you may sign up to receive updates from the SBA directly at:


The information above is intended to act as a general resource and therefore does not address all considerations and jurisdiction-specific analyses that may need to be undertaken prior to taking action. Thus, employers should seek specific counsel.