Updated 3/5/21
Pursuit is happy to announce that under the Economic Aid Act, Congress authorized a second round of payment relief for eligible SBA loan recipients. This benefit is also referred to as “Section 1112” payments. The SBA initially provided guidance on how the second round of payment relief should operate on January 19, 2021 but revised those rules on February 17, 2021. The revised rules have reduced borrower benefits due to limited funding from Congress. Please note that this change in benefits is due to SBA guidance and is outside of Pursuit’s control.
This guide has been updated to reflect the new rules and we encourage you to periodically review this page for further changes.
An important note: You do not need to “apply” for relief. The team at Pursuit will automatically process relief payment just as we did throughout the first round of payment relief. If you are eligible for this program, you will be automatically enrolled in payment relief. No further action is needed on your part.
Due to the extreme volume of inquiries we are currently experiencing, your fastest resource for information on SBA loan payment relief will be this page, which we will be keeping up to date. We will be sending out periodic updates on this program by email. To ensure you receive updates, please add [email protected] to your email address book.
There is no need to reach out to our team at this time. Rest assured that if we need to discuss your loan with you, we will be in immediate contact.
Am I eligible for SBA loan payment relief?
If you received payment relief in the first round, you are very likely eligible for second round payment relief. If, for some reason, you are not eligible for the second round you will hear from our team personally. There is no need to contact Pursuit with questions about your eligibility. We will contact you on an as-needed basis.
This infographic breaks down eligibility based on when your SBA loan was funded, and can be a helpful tool in determining if you qualify.
How SBA loan payment relief works
The SBA recently provided guidance on how the second round of payment relief should operate. The information below is applicable to all SBA loan types made through Pursuit. Additional information is also included below for specific loan products.
Note the following critical round two updates:
- Eligible businesses will receive 2 months of relief.
- Some businesses are eligible for up to 5 months of relief, subject to available funds. Businesses eligible for additional payment relief (three months plus the initial two months) are defined by their NAICS codes and in some cases, their loan type.
- Borrowers eligible for additional payments must be in an industry that has the NAICS code beginning with 61, 71, 72, 213, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812.
- You do not need to “apply” for relief, regardless of your eligibility level. Rest assured, Pursuit knows which borrowers are eligible for what relief terms
- Payments are capped at $9,000 month
- Pursuit is temporarily suspending automatic payment withdrawals (ACH) for clients with a payment amount less than $9,000
- Payments due in excess of $9,000 on SBA 7(a) loans will be deducted via ACH, if applicable. (For example: if your monthly payment is $12,000, then $9,000 will be paid on your behalf and you will be responsible for the balance of $3,000)
- If you are a 504 borrower, and only if you are 504 borrower, you are responsible to submit payments due in excess of $9,000. Directions are included below
- The second round of payment relief will begin February 1, 2021 or when your deferment period is over.
Additional information based on loan type
- 7(a) borrowers are automatically eligible for 2 months of relief
- Pursuit is aware of which borrowers are eligible for additional relief; we will be in contact before the end of the 2 months to confirm additional eligibility, as applicable
- Payments due in excess of $9,000 will be deducted via ACH, if applicable (For example: if your monthly payment is $12,000, then $9,000 will be paid on your behalf and you will be responsible for the balance, or $3,000)
- 7(a) loans are designated by those greater than $250,000 at time of origination and typically were not used to purchase commercial real estate
- Community Advantage borrowers are eligible for up to 5 months of relief, subject to available funds. NAICS codes do not influence additional eligibility. The Community Advantage loan type determines automatic eligibility.
- CA loans are typically designated by those less than $250,000 at time of origination. Community Advantage loans also include ‘CA’ within their loan number. You can confirm this designation on your monthly statement provided by Pursuit.
504 loans approved on or before September 27, 2020 and funded on or after September 27, 2020 are now eligible for benefits.
Loans approved prior to March 27, 2020 but funded after September 27, 2020:
- Will receive First Round Payments (3 months). No cap on payments.
- Once the First Round Payments are completed, Borrower is eligible for Second Round Payments subject to funding availability.
- Second Round Payments are for 2 months capped at $9,000 per month.
- An additional 3 months of payments, capped at $9,000 per month, following the end of the 3-month period, may be available if the borrower has a NAICS code in a hard-hit industry as determined by SBA. You can find the list of eligible NAICS codes here.
- If the monthly payment per the original amortization schedule is more than $9,000 the borrower is responsible to remit the difference by wire or check.
Loans approved between March 27, 2020 and September 27, 2020 but funded after September 27, 2020:
- Will receive First Round Payments (3 months). No cap on payments.
Loans approved and funded prior to September 27, 2020:
- You have already received 6 months of First Round Payment Relief with no cap on payments.
- Beginning on February 1, 2021, you will receive Second Round Payment Relief for 2 months capped at $9,000 per month.
- An additional 3 months of payments, capped at $9,000 per month, following the end of the 2-month period, may be available if the borrower has a NAICS code in a hard-hit industry as determined by SBA.
- If the monthly payment per the original amortization schedule is more than $9,000, the borrower is responsible to remit the difference by wire or check using these instructions.
Loans approved between September 28, 2020 – January 31, 2021:
- Are NOT eligible for any Section 1112 payments regardless of when they fund.
Loans approved between February 1, 2021 and September 30, 2021:
- Loans approved between February 1, 2021 and September 30, 2021 are eligible to receive Section 1112 Relief Payments for 3 months capped at $9,000 per month.
- If the monthly payment per the original amortization schedule is more than $9,000, the borrower is responsible to remit the difference by wire or check using these instructions.
- Microloan borrowers are eligible for up to 5 months of relief, subject to available funds. NAICS codes do not influence additional eligibility. The Microloan loan type determines automatic eligibility.
- Microloans are typically designated by those less than $50,000 at time of origination. Microloans also include ‘ML’ within their loan number. You can confirm this designation on your monthly statement provided by Pursuit.
Frequently asked questions
Any SBA loan originated with Pursuit will adhere to the eligibility terms defined by Section 1112 and detailed above. Non-SBA loans originated by Pursuit are not eligible for the payment relief program. Pursuit is processing loan modifications as necessary.
NAICS stands for North American Industry Classification System (NAICS) code. There are a few ways to verify your designation. The easiest method is to look at the business tax returns for the company that received a loan from Pursuit. Look for the “business activity code no. [number],” which is generally listed within the first few pages of the return. Your accountant will likely have this information readily available for you too. You can also use this tool to look up your company’s NAICS code.
Please note that Pursuit is using your NAICS designation to know and determine your eligibility terms for payment relief. Please use this information as a way to navigate your own understanding of the Section 1112 relief program.
The extension of payment relief updated eligibility criteria for businesses who were not immediately eligible for the first round of payment relief. If your business is newly eligible, rest assured Pursuit will be in direct contact with you to discuss next steps.
If your monthly loan payment is above $9,000, you are responsible to pay the remaining amount.
If you have an SBA 504 loan, the payment must be made by check or wire payment using these instructions.
If you have a SBA 7a or Community Advantage loan, we have already modified the ACH amount and will pull the difference.
Section 1112 Relief Payments will begin after your loan deferment period has expired, unless you choose to end your deferment period early.
To terminate your 504 loan early, please submit a request in writing to [email protected]. We will review the request and only consider approval if the bank providing the first mortgage continues to offer a deferment on their loan or if you can demonstrate the ability to meet all obligations based on a financial review. Please be advised the administrative process to terminate the deferment could take longer than just letting the deferment expire.
No. You will need to continue remitting your catch up payments (amount is un-changed) to the Central Servicing Agent using these instructions.
