Deductibility of SBA Loan Fees paid for by CARES Act funds

[emscpasbca]

Wage Expense paid for via the government via the CARES Act and the PPP loan program is deductible on the federal return.  

In 2020, an SBA borrower had 6 months of its SBA loan payments paid for by the government via the CARES Act. Included in the payment is components for principal, interest, CDC, SBA and CSA Fees. 

Is the borrower entitled to deduct the mortgage interest and / or the SBA Fees paid for by the government via the CARES Act? 

The Annual Statement from the SBA shows the break down of fees paid by the borrower versus the government and shows interest paid by the borrower and total interest paid. 

Thank you for your time in response. 

[qbteachmt]

I've never seen anything about loan Fees. Sorry. The SBA has great info at their website, so that should be easy to resolve by a bit of research.

The Loan Payments (principal and interest) paid for by SBA (6 payments), the interest still is reported on 1098-Int and still is deductible. The Principal is not reported as if that was income; there should not be a 1099-Misc for that amount. Principal is never deductible, anyway.