The CARES Act provides debt forgiveness for 6 months on all existing SBA 504 loans and those that fund within the next 6 months – ACH payments on your SBA loan will be paid by the SBA for 6 months, starting with today’s payment.
While we knew that the CARES Act that had been signed into law on March 27th would provide forgiveness for existing 504 loans as well as those that fund within the next 6 months, we had yet to receive guidance in terms of what to expect for your April 1st and subsequent payments or what documentation would be required from our clients, and we have just been notified of the following:
The ACH payment for your SBA 504 loan will NOT be debited from your account today, April 1st. Under the CARES Act, SBA will automatically pay the principal, interest, and any associated fees that are owed on a 504 loan in a regular servicing status. The SBA will continue to make these loan payments on your behalf for the 6-month period beginning April 1st, 2020.
This means that your loan payment will NOT be withdrawn today and for the next 5 months. You do not need to request it or do any paperwork – Capital Access Group is handling all the necessary work. If you already started the process of a loan deferment, that will be stopped at this point (you do not need to contact us to do that, it’s already been handled). Please note, this debt forgiveness applies to the SBA second mortgage only, not the first mortgage.