Link to Notice 5000-1401 for SBA Form 912, SBA Form 1081-2026

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The SBA Procedural Notice 5000-1176 outlines the payment of interest on ARC loans after default and during liquidation. It clarifies that borrowers are not responsible for interest payments, which are covered by the SBA, while principal repayment begins after a deferral period. The notice details conditions under which lenders must transfer loans into liquidation and the process for submitting loans for purchase following defaults. It also specifies how interest payments will be handled upon loan purchase and addresses discrepancies in interest calculations.

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