CARES Act Loan Payment Subsidies
The subsidy includes the Administrator paying (on behalf of the borrower) the principal, interest, and any associated fees owed in a regular servicing status for loans made:
- before this CARES Act is enacted not on deferment, for the six-month period beginning with the next payment due;
- before this CARES Act is enacted that are on deferment, for the six-month period beginning with the next payment due after deferment; and
- within six months of enactment of the CARES Act, for six months after the first payment is due.
Borrowers are encouraged to speak with their lenders regarding this subsidy.
If you have any questions about this post or any other related matters, please feel free to email me at mdslak@norris-law.com.
We will be keeping you informed about the CARES Act of 2020 through this “Inside the CARES Act” series on our Biz Law Blog. For other topics related to COVID-19, visit our Coronavirus Thought Leadership Connection.