Small Business Debt Relief Program (SBDR)

This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.

SBDR FAQ’s

QUESTION: Which SBA loans are eligible for debt relief under this program?

Answer: 7(a) are eligible under SBDR so long as they are not issued as Paycheck Protection Program (PPP) loans, 504 loans, or microloans. Disaster loans are also not eligible (see EIDL for more information about these loans).

QUESTION: Can I apply for debt relief if I have a PPP loan?

Answer: You may separately apply for and take out a PPP loan, but PPP loans are not eligible for debt relief under SBDR.

QUESTION: Am I eligible for a 7(a), 504, or microloan?

Answer: Each of these programs has different requirement. Generally, your businesses must meet each programs size standards, be based in the U.S., be able to repay, and have a sound business purpose. For specifics on each program, see: https://www.sba.gov/funding-programs/loans

QUESTION: What is a 7(a) loan and how do I apply?

Answer: The 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses. The exact type, terms, conditions, and guarantees vary depending on which SBA program a loan utilizes. The SBA 7(a) loan program is targeted towards small business borrowers who need: (i) access to versatile financing; (ii) short-term or long-term working capital; (iii) acquisition funds for the purchase of existing business; or (iv) to the ability to refinance of current business debt. The SBA partners with approved banks/lenders who share a portion of the risk of the loan. The 7(a) program has a wide variety of programs, for more information visit this SBA link or to help find an SBA approved lender click here.

QUESTION: What is a 504 loan and how do I apply?

Answer: The 504 Loan Program provides loans to approved small businesses with longterm, below market fixed-rate financing for the acquisition of fixed assets for expansion or modernization (usually real estate or large equipment) and refinancing of large equpment and/or owner-occupied commercial real estate. Generally, loans are capped at $5 million, but some exceptions apply for loans of up to of up to $5.5 million.Applications for 504 loans are made through a nonprofit Certified Development Company with the help of third-party lenders (typically banks).

QUESTION: What is a SBA microloan and how do I apply?

Answer: The Microloan Program provides loans up to $50,000 to help small businesses and certain not-forprofit childcare centers to start up and expand. The average microloan is about $13,000. The SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.

QUESTION: I’m not familiar with SBA loans in general, are there resources to help me determine what’s best for me and help me apply?

Answer: You’re not alone here, the SBA has resource partners all over the U.S. that can help guide you through the loan application process. You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center here.

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