CARES Act 1099 Forms
December 9, 2020
Good Afternoon:
SBA issued Information Notice 5000-20067 (effective 12/8/2020), Tax Issues Relating to the Payments Made on Behalf of Borrowers under Section 1112 of the CARES Act. The notice answers questions regarding the tax treatment of Section 1112 payments. One of the Q&As specifies that 7(a) lenders are required to issue Forms 1099-MISC reflecting the total amount of the Section 1112 payments (principal, interest and any fees) for every loan that received payments that has not been purchased by SBA, or, if it has been purchased, continues to be serviced by the lender. For 504 borrowers whose payments were made by the SBA, Forms 1099-MISC will be sent by the SBA directly to the borrower.
If you have any further questions regarding your 504 borrower’s loan, feel free to email the Servicing Team at: servicing@michigancdc.org
Have a great day.
Mark Williams, President
With seven offices throughout Michigan, MCDC‘s experienced team will work with you through every step of your SBA Loan. MCDC is a non-profit corporation certified by the U.S. Small Business Administration to provide SBA 504 Loan Financing and 7(a) Lender Services. For more than 35 years MCDC has been a leader in SBA financing in Michigan, participating in projects impacting more than 62,000+ jobs and more than $2.9 Billion of economic investment. For more information, please feel free to call us at 833-4SBA-LOAN or 833-GET-7ALOANS or visit us at www.michigancdc.org.
