Essentially, for new loans approved after February 1, 2021, the SBA will make 3 months of payments rather than 6 months. They are still extending the payments for Hospitality industry and specific SIC codes for an additional 5 months. See below:
- New Loans Approved Beginning on February 1, 2021 and Ending on September 30, 2021:
For a new 7(a) loan, 504 loan, or Microloan approved during the period beginning on February 1, 2021 and ending on September 30, 2021, SBA will make the Section 1112 payments for a 3- month period instead of a 6-month period, subject to the availability of funds.
- No Second Round 1112 Payments for Loans Approved Between March 27, 2020 and September 27, 2020.
A loan that was approved during the period beginning on March 27, 2020 and ending on September 27, 2020 is eligible for the first round of Section 1112 payments either for a 6-month period if the loan was fully disbursed on or before September 27, 2020 or for a 3-month period if the loan was fully disbursed after September 27, 2020. Under the Adjustment Plan, no other Section 1112 payments will be made for these loans.