Adjustment to Number of Months of Section 1112 Payments in the 7(a), 504 and Microloan Programs Due to Insufficiency of Funds
Amends previously issued guidance related to the extension of Section 1112 payments as authorized by the Economic Aid Act. That Act established the upper limit on the number of payments that could be provided for each category of loans described in the Act, but required SBA to develop a plan to proportionally reduce the number of such payments if it determined that the $3.5 billion appropriation provided would be insufficient to cover all of the authorized payments. This notice indicates that SBA has determined that the appropriation will be inadequate and provides SBA’s “Adjustment Plan” which reduces the number of months of Section 1112 payments that SBA will provide for each category of loans. The new plan is effective immediately and will apply beginning with the February 2021 payments.