The correct answer is that you record a credit to Other Income for the amount of the payment being made by SBA, you debit interest expense for the interest amount of the payment, and debit your SBA long-term liability account for the principal amount of the payment. You do this for all 6 payments that were made by SBA. You should create a general journal entry to do this.
as to the question on whether the 6 months of payments that are being paid by SBA is taxable income, please consult with your tax advisor who is knowledgeable about the CARES act
