SBA Issues Updated Guidance on COVID-19 Relief for 7(a), 504, Microloans

The Small Business Administration last night issued several notices providing updated guidance on various COVID-19 relief programs. An information notice issued by SBA provides an update on the tax treatment of payments made to borrowers to cover principal, interest and fees on certain 7(a), 504 loans and microloans under Section 112 of the CARES Act.

According to the guidance, these borrowers “are no longer required to file Form 1099-MISC, Miscellaneous Income, with the IRS or furnish this form to the small businesses on whose behalf the SBA made Section 1112 payments.”

The other procedural notices extend the use of electronic signatures for 7(a), 504 and microloan programs through April 30, and extend temporary procedures for microloan closings through April 30.