August 2020
Ask The Experts
SBA 504 Q&A: 504 Loan Payments and the CARES Act

Q: The Small Business Administration (SBA) has been making my loan payments since April 2020.  When do those payments stop?  Will I receive notification from Florida First Capital or the SBA when this occurs?  Do I need to do anything to resume my loan payments?

Ask the SBA 504 Loan ExpertsA: Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provided $2.2 trillion in COVID-19 related debt relief, the Central Servicing Agent (CSA) for the SBA stopped debiting borrowers’ accounts on the first of each month, beginning on April 1, 2020.

The majority of the loans in the 504 portfolio are receiving CARES Act Section 1112 payments from April through September 2020.  The CSA will begin debiting these accounts again on Oct. 1, 2020.

Florida First Capital will be reaching out to all borrowers who fall within these guidelines over the coming days to remind them of the upcoming deadline for the CARES Act Section 1112 loan payments.  At that time, borrowers will be advised of the following:

  If the borrower’s target ACH account has not changed since March 2020, then no action is required, and the CSA will debit that account on Oct. 1, 2020.

  If the borrower’s target ACH account changed, Florida First Capital will work with the borrower to get a new, updated ACH debit authorization form completed and submitted to the CSA in time for the Oct. 1, 2020, loan payment.

If you have a question for our SBA 504 loan experts, email us at or call 850.681.3601 or toll-free at 800.504.LOAN.