SBA Information Notice: Notice to Lenders that SBA has Informed Eligible Borrowers of Assistance Available under Section 1112 of the CARES Act (Control No. 5000-20086)
Summary
This SBA Information Notice, Control No. 5000-20086, effective January 27, 2021, tells 7(a) Lenders, Certified Development Companies and Microloan Intermediaries that, as the Economic Aid Act enacted on December 27, 2020 required, SBA has written to 7(a), 504 and Microloan borrowers about their eligibility for debt relief payments under Section 1112 of the CARES Act. The letter gave an overview of which loans are eligible and for how many months, and told borrowers how to seek help from the lender or SBA if they had not received assistance. Letters went to borrowers with loans approved up until September 27, 2020. The notice points lenders to Procedural Notice 5000-20079, issued January 19, 2021, for the updated criteria for eligible covered loans.
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Full text
SBA Information Notice
TO: All SBA Employees, 7(a) Lenders, Microloan CONTROL NO.: 5000-20086
Intermediaries, and Certified Development
Companies
EFFECTIVE: January 27, 2021
SUBJECT: Notice to Lenders that SBA has
Informed Eligible Borrowers of Assistance
Available under Section 1112 of the CARES Act
The purpose of this notice is to inform 7(a) Lenders, Certified Development Companies, and
Intermediaries that, in accordance with the requirements of the Economic Aid to Hard-Hit Small
Businesses, Nonprofits and Venues Act (Economic Aid Act) enacted on December 27, 2020,
SBA has provided written notification to 7(a), 504 and Microloan borrowers of their eligibility
for debt relief payments under Section 1112 of the CARES Act (“Section 1112 payments”).
In this letter, SBA provided current borrowers with an overview of the assistance available under
Section 1112, including which loans are eligible to receive the Section 1112 payments and the
number of months for which that loan may receive the payments. The letter also informed the
borrower about how to seek assistance from the lender or SBA if the eligible borrower has not
received assistance for a covered loan and provided guidance on how to request loan deferment
once subsidy payments under section 1112 are concluded, if needed.
Letters have been sent to those borrowers that had loans approved up until September 27, 2020
that are eligible for the Section 1112 payments. Some of these borrowers may have already
received assistance from SBA over the past year under Section 1112 of the CARES Act, and the
letter informed these borrowers of the additional assistance for which they may be eligible.
The updated criteria for eligible covered loans are detailed in Procedural Notice 5000-20079-
Guidance on the Implementation of the Extension of the Section 1112 Debt Relief Program for
the 7(a) and 504 Loan Programs, as Authorized by Section 325 of the Economic Aid to Hard-Hit
Small Businesses, Nonprofits, and Venues Act issued on January 19, 2021 and Procedural Notice
5000-20080 for the Microloan Program.
Letters were not sent to borrowers that had loans approved between September 28, 2020 and the
date of the letter, as those loans are currently not eligible to receive debt relief under current law.
PAGE 1 of 2 EXPIRES: 1-1-22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
A sample copy of the letter sent to all borrowers has been posted on SBA’s website at
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief#section-
header-4.
All Section 1112 debt relief is subject to funds availability provided by Congress. If SBA
determines that there will be a funding shortfall, SBA will provide Congress with a plan that
reduces the timeline for making debt relief payments and provide notification to all SBA
participants.
Questions
Questions on this Notice may be directed to the Lender Relations Specialists in the local SBA
Field office. The local SBA Field office may be found at https://www.sba.gov/tools/local-
assistance/districtoffices.
Dianna L. Seaborn
Director
Office of Financial Assistance
PAGE 2 of 2 EXPIRES: 1-1-22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
File and source
- File
- 2021-01_Info-Notice-Ltr-to-Borrowers-Section-1112.5000-20086.pdf
- Size
- 84,492 bytes
- SHA-256
- 769d8db493d59c69b85559040d2e7583ddab9c52a3f1220cea51c4cc00ddd807
- Original
- www.sba.gov