SMALL BUSINESS DEBT RELIEF
Small Business Debt Relief – if you are a current borrower under SBA 7(a), 504 loan program or a microloan, you are eligible for debt relief and SBA will cover all loan payments for 6 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.
For current SBA Service 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.
What does an “automatic deferral” mean to borrowers?
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 Pre-Authorized 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.
Borrowers preferring to continue making regular payments during the deferment period may continue to do so. SBA will apply those payments normally as if there were no deferment.
After this automatic deferment period, borrowers will be required to resume making regular principal and interest payments. Borrowers that cancelled recurring payments will need to reestablish the recurring payment.
If you have questions about your current loan and whether or not your loan is automatically deferred, please contact your Loan Servicing Office:
Birmingham Disaster Loan Servicing Center:
El Paso Disaster Loan Servicing Center:
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Please monitor this page on a regular basis for updates.