Small Business Debt Relief Program

The SBA will automatically pay the principal, interest, and fees of current 7(a) loans for a period of six months.

The SBA will also automatically pay the principal, interest, and fees of new 7(a) loans issued prior to September 27, 2020.

More on Small Business Debt Relief Program

Program Details

Who is Eligible:

All small businesses, non-profits, veterans organizations, tribal businesses, ESOPs and cooperatives with less than 500 employees, sole proprietorships, self-employed individuals, and independent contractors

Loan Details:

  • Maximum Amount: Up to $10 million or 2.5x average payroll cost, whichever is less.
  • Interest rate of 0.5%
  • Maturity of 2 years
  • First payment deferred for six months
  • 100% guarantee by SBA
  • No collateral
  • No personal guarantees
  • No borrower or lender fees payable to SBA

Loan Forgiveness:

If proceeds used for payroll costs and other designated business operating expenses [mortgage/rent, utilities] in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)

How to Apply

Applications for small business businesses and sole proprietors open April 3. Applications for independent contractors and self-employed open April 10. You will apply through your locally authorized bank and non-bank lenders. This will typically be your existing banking partner.


Verify your business’s eligibility


Review the Prepare, Apply, Comply Guide


Review the Application

and gather the necessary materials such as payroll tax filings, proof of lease payments, proof of mortgage payments, and proof of utility payments

Contact your accountant and/or bank

Get in contact with your accountant and/or bank that pays out your business’s payroll. Ask your lender if it is authorized to process your Paycheck Protection Program loan. If you are not connected to an authorized lender, find an eligible lender here