Small Business Administration Loan Relief

IMPORTANT NOTE: This information may change depending on SBA Procedural Rule and Guidance Changes


February 25, 2021 - The Small Business Administration (“SBA”) recently determined that the $3.5 billion that was appropriated to carry out the Economic Aid Act is insufficient to make the payments for the periods authorized by the CARES Act, as amended by the Economic Aid Act. Effective as of February 16, 2021, the following changes are in effect:

Newly Eligible First Round Loans

For newly eligible loans, SBA will make three (3) months of payments. These loans include 7(a) and 504 loans approved on or before September 27, 2020 that were fully disbursed on or after September 28, 2020.

Second Round Loans (except Community Advantage)

For all non-Community Advantage second round loans, SBA will make two (2) months of payments. In addition to these payments, for non-Community Advantage second round loans assigned a North American Industry Classification System (NAICS) code beginning with 61, 71, 72, 213, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812, SBA will make three (3) additional months of payments. Second round loans include loans that were approved before March 27, 2020.

Second Round Community Advantage Loans and Microloans

For second round Community Advantage Loans and Microloans, SBA will make five (5) months of payments. Second round loans include loans that were approved before March 27, 2020.

Loans Approved between February 1, 2021 and September 30, 2021

For newly approved loans, SBA will make three (3) months of Round 2 payments, subject to availability of funds.

Loans That Will Not Receive Second Round Payments

Loans that were approved between March 27, 2020 and September 27, 2020 were previously eligible for six (6) months payments under the CARES Act if the loans were disbursed on or before September 27, 2020. If these loans were fully disbursed after September 27, 2020, they are eligible for three (3) months as described above under Newly Eligible First Round Loans. None of these loans will be eligible for second round payments.

All Round 2 payments made are subject to the monthly payment limit of $9,000

Please click here for a helpful chart provided by the SBA that illustrates the changes above.

Thank you for choosing our bank for your SBA Loan. We stand by our clients in times of uncertainty and look forward to working together in the better times ahead. Please reach out to your local banker with any questions about this program.

Frequently Asked Questions on the SBA Loan Relief Program

  • What SBA Loan borrowers are included?

    This list is subject to change depending on guidance from the SBA:

    • Borrowers with SBA microloans or 7(a) Community Advantage loans 
    • Borrowers with any 7(a) or 504 loan in the hardest-hit sectors since the start of the pandemic, as measured by the severity of sector-wide job losses, including all those belonging to 2- and 3- digit NAICS categories with the most severe job losses: accommodation and food services (72); arts, entertainment, and recreation (71); educational services (61); mining and logging (213); apparel (315); clothing and clothing accessory stores (448); sporting goods, hobby, book, and music stores (451); air transportation (481); transit and ground passenger transportation (485); scenic and sightseeing transportation (487); publishing industries, except Internet (511); motion picture and sound recording industries (512); broadcasting, except Internet (515); rental and leasing services (532); and personal and laundry services (812).
  • What are the additional modifications specific to the SBA 7(a) Loan Program?

    Currently, the following is being provided for increased guarantees and increased Express Loan size:

    • Increases the loan guarantee amount on 7(a) loans, including for Community Advantage loans, to 90 percent until October 1, 2021. 
    • Increases the Express Loan amount from $350,000 to $1 million on January 1, 2021, and then reverts permanently to a lower amount of $500,000 on October 1, 2021. The Express Loan guaranty amount for loans of $350,000 and less is temporarily increased from 50 percent to 75 percent, and for loans above $350,000 the guarantee remains at 50 percent. On October 1, 2021, the guarantee reverts to 50 percent for all Express Loans. 
  • What if my loan is currently setup for automatic payments?

    We have suspended all automatic payments for SBA loans effective February 1, 2021.

  • What if I already made my February payment?

    Contact your local banker to obtain a refund of the payment.

  • What if I wish to continue making my payments as usual despite the SBA payments?

    These payments will count toward the principal balance of your loan.