Does your business currently have or is about to receive a SBA 7(a), 504, and microloans? Or do you currently have a SBA Serviced Disaster (Home and Business) Loan?
Originally Posted Apr. 2, 2020
Current or new SBA 7(a), 504, and microloans
For a period of six months, the SBA is automatically providing a financial reprieve to small businesses during the COVID-19 pandemic by covering all principal, interest and fees on current and new SBA 7(a) loans made through September 27, 2020, for up to six months.
In other words, as part of SBA's debt relief efforts,
The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
Previous SBA Serviced Disaster Loan
For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
Interest will continue to accrue on the loan.
1201 monthly payment notices will continue to be mailed out which will reflect the loan is deferred and no payment is due.
The deferment will NOT cancel any established Preauthorized Debit (PAD) or recurring payments on your loan. Borrowers that have established a PAD through Pay.Gov or an OnLine Bill Pay Service are responsible for canceling these recurring payments. Borrowers that had SBA establish a PAD through Pay.gov will have to contact their SBA servicing office to cancel the PAD.
If you have questions about your current loan and whether or not your loan is automatically deferred, please contact your Loan Servicing Office directly using the following information:
Birmingham Disaster Loan Servicing Center:
El Paso Disaster Loan Servicing Center: