What you Need to know about Section 1112 Round 2 Payments
Includes the 2/16/2021 Adjustment Notice Updates to Round 1 and 2
In our last article, we discussed the highlights of the Expanded Eligibility for First Round Section 1112 Payments referenced in Notice 5000-20079. If you missed it, you can find it HERE.
In this article, we’re focusing on key points of the Second Round Section 1112 payments, covering the principal, interest, and associated fees (further described in the Notice 5000-20079).
WAIT!!! Stop the presses!
We are also including information from the newest Notice 5000-20095 in our discussion. This notice offers further guidance to Section 1112 payments, most notably adjusting the number of payments available for borrowers.
SBA determined that the $3.5 billion appropriated for the Section 1112 payments stated in section 325 of the Economic Aid Act isn’t enough to make the payments for the time authorized. Therefore, in accordance with the Economic Aid Act, SBA is reducing the number of months that payments will be made for each category of loans. These adjustments are effective immediately.
We created a handy Section 1112 Round 1 and Round 2 Payment Schedule tool, covering SBA 7(a), 504, and Community Advantage loans to help you track the payments currently available to borrowers. Please click the link to get your copy of the tool: Section 1112 Payment Schedule tool.
Whether you need a little advice, help with correcting reports submitted to SBA for the Section 1112 payments, or anything related to SBA lending, feel free to contact LRM Lender Consultants at 877-576-0819 and let’s talk about how LRM can be a key resource for all of your SBA lending needs.