On February 16, 2021, SBA issued a Procedural Notice (Click here for SBA Procedural Notice 5000-20095) detailing reduced debt relief benefits to 7(a), 504, and Microloan Programs due to insufficiency of funds.
SBA has determined that the original $3.5 billion, originally appropriated to carry out extended CARES Act Section 1112 payment subsidies, is insufficient to make all payments for the periods originally authorized. Consequently, as authorized by the law, SBA has developed a plan to proportionally reduce the number of months of payment subsidies provided for each category of loans (“Adjustment Plan”). This Adjustment Plan is effective immediately.
To better assist our lending partners in understanding this Adjustment Plan, (Click Here for an updated NADCO Flow Chart).