SBA & USDA Lending Solutions

without hiring staff or incurring capital expenditures

PROCEDURAL NOTICE 5000-806780

Guidance on 7(a) and 504 Loans with Monthly Installments in Excess of $9,000

The notice provides supplemental guidance for lenders that have loans sold into Secondary Market pools when the maximum $9,000 payment made by SBA under Section 1112 of the CARES Act, as amended, is less than the total installment amount due. For a loan meeting that criteria, if the borrower is unable to pay the excess due at the time the payment is due, SBA will approve the lender’s request for a principal-only deferment.

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