CARES ACT 6 Months SBA payments - Taxable to recipient

[Tlynncpa]

Are the 6 months payments made on SBA loans as a result of the CARES act taxable to the recipient?   Principle, Interest or both?

[Cynthiad66]

No.  Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, the SBA is authorized to pay six months of principal, interest, and fees on covered SBA loans. ... 116-260, provides that these payments are not includible in the borrower's gross income.

As a part of the CARES Act, SBA is authorized to pay 6 months of principal, interest, and any associated fees that borrowers owe for all 7(a), 504, and Microloans reported in regular servicing status (excluding PPP loans). ... Borrowers need not apply for this assistance.

[Tlynncpa]

Ok not included in Gross income but an offset to expenses?

[Critter-3]

Correct. 

[Tlynncpa]

one last clarification.  Both Principle and Interest.  correct?

[DMarkM1]

Correct.  It is principle and interest payments.