The SBA Emergency Loan funding included in the COVID-19 relief package enacted last week
has rightfully gotten a great deal of attention in the press and numerous summaries of the new
law, including our own.
If you have an existing SBA Loan, the SBA’s deferment policies are another tool available to
help you navigate these uncertain times. The SBA recently reminded SBA lenders that its
existing guidelines give them broad authority to grant SBA borrowers deferments that
restructure or delay payments. Lenders can make deferment decisions and design their terms
based upon each borrower’s unique situation. If a lender owns the loan it can offer deferments
of as long as 6 months. If the loan has been sold to an investor, the lender can offer deferments
for up to 90 days without the investor’s consent.
If you have a SBA Loan we would encourage you to contact your lender to update them about
the current status of your business and, if you are concerned about COVID-19’s impact on your
business, to ask them what information they will need to consider a deferment.
If you have any questions about the terms of your current SBA Loan or how to work with your
lender on a loan deferment, please contact Mary Kay Gaver at [email protected].
