SBA Payment Relief 2021 – for your CDC Small Business Finance SBA loan
As small businesses continue to face the challenges of the pandemic, we are pleased to inform CDC Small Business Finance borrowers with an SBA loan that you will be able to take advantage of new SBA payment relief that was passed by Congress in December and amended to the CARES Act.
If your SBA loan was approved before March 27, 2020, you may have or will soon receive a letter from the SBA regarding new CARES Act payments. CDC Small Business Finance is working hard for you. You are in good hands and can count on the proper relief payments being applied to your SBA loan.
SBA Payment Relief for SBA loans approved before March 27, 2020
The relief is automatic. You do not need to do anything to benefit.
- If you have a fully disbursed loan, the payments will begin February 1, 2021
- If your loan has NOT been fully disbursed yet, you will continue to make payments as agreed, and then once your loan has been fully disbursed to you, your SBA payment relief will automatically begin.
- Fully disbursed is when your full loan amount has been provided to you from CDC Small Business Finance.
- Your SBA loan that was approved before March 27, 2020
- The SBA will cover all principal and interest payments (up to a maximum of $9,000 per month) on your behalf for a designated amount of time (a minimum of two months).
- SBA 504 borrowers with monthly payments over $9,000 will receive a future communication from us with a step by step guide on how to pay the balance.
- As a CDC Small Business Finance borrower, you will receive a letter the week of January 25th from us with the SBA payment relief details specific to your SBA loan and industry.
- The letter will include how many months you will receive the benefit which is entirely based on the CARES Act parameters by loan type.
For SBA loans approved between March 28th – September 27th, 2020
- You are already eligible for 6 months of SBA payment relief.
- We are closely monitoring the situation and will keep you updated if additional relief payments are approved by the SBA for your loan.
For SBA loans approved between September 28th – January 31, 2021
- Presently there is no provision in the CARES Act for new SBA borrowers with relief payments for loans approved between September 28th and January 31st, 2021.
- We will continue to monitor the situation and inform you if there are developments which may provide you with some level of benefit.
Please keep an eye out for an email from CDC with all the details about your SBA Payment Relief benefit. If after you have received your email and you have additional questions, please email us at SBArelief@cdcloans.com