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SBA Introduces 60-Day Goodwill Exception Period,
Expands Hardship Accommodation Plans
Published on January 5, 2024
WASHINGTON – The U.S. Small Business Administration (SBA) has announced expanded flexibility and accommodations for COVID EIDL and PPP borrowers to help bring them into compliance and avoid the repercussions of defaulting on a government loan.
For COVID EIDL and PPP borrowers with loans under $100,000, the SBA has implemented a 60-day goodwill exception period starting January 1 and lasting through March 3, 2024. During this period, the SBA will build on its extensive outreach to affected businesses to ensure that PPP borrowers know how to apply for forgiveness and COVID EIDL borrowers are aware of all repayment options — including the opportunity for hardship repayment plans. Further, the SBA will refrain from escalating collections activities until after the goodwill exemption period.
Small business borrowers in delinquency or default who take action and obtain good standing with the SBA will improve their long-term financial health substantially. The benefits of getting, and staying, current on SBA loans include better credit scores, which make it cheaper and easier to buy a home or car in the future; eligibility for future government financial assistance, like a VA loan or help after a natural disaster; and, in some cases, avoidance of federal and private collections activities which can include withholding tax returns and wage garnishment.
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