If you’re one of many Atlanta and Stone Mountain small businesses, you might be interested in a debt-relief program geared towards small businesses like yours. Here at NTRC Tax, we are also available for personal financial help and assistance with your personal taxes; however, during this new normal involving COVID-19, your business might need a little support and relief from monthly bills.
What is the SBA Debt Relief Program?
According to SBA.gov, the SBA Debt Relief Program is “a financial reprieve to small businesses during the COVID-19 pandemic.” Many of our Stone Mountain and Metro Atlanta small businesses have struggled since March; unfortunately, it doesn’t look like things will be changing any time soon. If your business has “current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020”, you won’t have to pay any principal, interest, or associated fees for 6 months.
This program is a part of the two trillion dollar CARES (Coronavirus Aid, Relief, and Economic Security) Act, aimed at supporting the nation’s small businesses with immediate debt relief. If your business wasn’t already aware of this portion of the CARES Act and continued making loan payments after March 27th, you may be eligible for a refund on your payment.
What are the Specifics?
First and foremost, you need not have applied to this relief program. If your loan was active and not in deferment, the SBA would have automatically started making the first of six payments for you. If your loan was in deferment on March 27th, the SBA will start its first of six payments as soon as your loan exits deferment. Furthermore, if you accrued a loan balance after March 27th (but before September 27th), the SBA will make the first of six payments as soon as the first bill comes due.
How do I Know I Qualified?
As with any loan, it is important to stay up to date with your payments; don’t assume that your business automatically qualified for this debt relief and stop your monthly payments right away. Contact your loan servicer for more information, just to be certain you don’t need to pay on your loan for six months. According to the SBA, this assistance was “not available for Paycheck Protection Program loans or Economic Injury Disaster loans.”
Here at NTRC Tax, we want you to be as financially prepared and informed as possible. If you have any questions in regards to the implications of this relief on your business, please don’t hesitate to reach out to us. We’re making ourselves available to help you and the rest of the small businesses in Stone Mountain, Georgia during this unprecedented time.