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SBA debt relief part of new funding


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The U.S. Small Business Administration will announce new small business debt relief assistance criteria soon, according to a Sunday news release.

In addition to additional funding for loans and grants, the new small business relief funding passed as part of the Consolidated Appropriations Act of 2020 on Dec. 27 has a provision allowing the SBA to forgive principal, interest and fee payments on some SBA loans, SBA Administrator Jovita Carranza said.

The SBA is in the process of determining how much debt assistance is allowed by the new relief package. The debt relief provisions affect money borrowed under 7(a), 504 and microloan programs.

The agency said it will post guidance about the forgiveness process on its website soon. That website is www.sba.gov.

“The new law extends SBA debt relief authority, allowing the Administration to continue alleviating adverse economic effects of COVID-19 for small businesses with SBA loans,” Carranza said. “Since April last year, the SBA has made over $7.1 billion in payments across 1,819,130 loans on behalf of these borrowers. It’s important to note that these firms were also initially able to access capital because of the SBA federal guarantee.”

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