We understand that these are challenging times for our small business owners and we will do our best to expedite your request for deferment of your SBA 504 loan.
1) The name of your company
2) An explanation that clearly outlines the impact COVID-19 has had on your business.
3) If available, please submit your December 31, 2019 balance sheet and profit and loss statement.
4) Choose if you want a deferment for:
– 3 months
– 4 months
– 5 months
– 6 months
5) Choose the amount of the deferment:
– a full deferral (No payments required during the deferred period)
– deferral of principal and interest (only Payment of servicing fees would be required during the deferred period. Approximately 90% of your current payment would be deferred)
– the principal payment deferred (Payment of servicing fees and interest required during the deferred period)
How does the deferment affect my loan?
- The total amount that was deferred during the period will be amortized into your payments over the next five years so that your monthly payment will increase.
- The longer the deferment period and the larger the amount deferred will result in a larger catch up payment.
- Please note that interest and fees continue to accrue on your loan during the deferment period.
What to expect:
- You will be notified when we receive your request by email.
- We will do our best to send you an answer within five business days. Please note, due to the influx of requests, in some cases it may take a little longer.
- The deferment request will start with your May payment. If your April ACH payment is rejected, the deferment will start with your April payment. You can request your bank to reject the ACH payment for April.
- A Deferment and Catch Up Plan will be sent to you to show you the amount the new payment will be during the catch up period. This plan will need to be signed by all borrowers and guarantors on the loan.
- During the deferment period, we will contact you to for other items needed to update our loan file.
Please contact your first mortgage lender directly to request a payment deferment on your first mortgage loan.
Economic Injury Disaster Loan
In addition to requesting a deferment on your SBA 504 loan, you can ALSO apply directly to SBA for an Economic Injury Disaster Loan.
- Loans of up to $2 million are available based on the financial impact of COVID-19.
- The interest rate is fixed at 3.75%.
- SBA offers repayment terms up to 30 years.
- Applicants must apply directly to SBA online at www.SBA.gov/disaster.
- Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email for more information or for assistance with the application.
- Processing time for these applications is about 1 month at this time.
For the SBA Fact Sheet describing SBA Disaster loans click here.