"Q: What must be reported as income on the Form 1099-MISC?
A. The total amount of the Section 1112 payments must be reported as income to the
Borrower, including the principal, interest and any fees that were included in the
Section 1112 payments. This total amount should be included in Box 3 of Form
1099-MISC."

From here:

https://content.govdelivery.com/accounts/USSBA/bulletins/2b0409a

And this reference gives the operational details:

https://www.sba.gov/document/procedural-notice-5000-20041-further-guidance-implementation-section-11...