Today, U.S. Small Business Administration Administrator Jovita Carranza announced changes to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through Dec. 31, 2020, will be automatic. Now, borrowers of home and business disaster loans do not have to contact SBA to request deferment.
“The SBA is looking at every option and taking every action to cut red tape to make it easier for small businesses to stay in business. Automatically deferring existing SBA disaster loans through the end of the year will help borrowers during this unprecedented time,” Carranza said. “Today’s announcement adds a list of growing actions the SBA is taking to support small businesses. These actions include making it easier for states and territories to request a declaration so small businesses statewide can now apply for economic injury disaster loans, and changing the terms of new economic injury loans to allow for one-year deferments. We are working around the clock to find ways to assist small businesses and today’s action is one step in this process.”
“These actions by the SBA make it easier for states and territories to request a declaration so that small businesses statewide can now apply for economic injury disaster loans,” added SBA Atlantic Regional Administrator Steve Bulger, who oversees the agency’s operations in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands. “This is another way the SBA is working around the clock to find ways to assist small businesses.”
“The SBA is here to help small businesses during these difficult economic times. We recognize that small business owners are faced with challenging decisions right now and SBA is proactively taking steps to alleviate the cash flow burden our existing disaster borrowers are under,” said SBA Buffalo District Director Franklin J. Sciortino “We are also encouraging our lending partners to follow suit by extending payment deferments on their SBA guaranteed loans to qualified borrowers who need relief. We are using all of our tools to face this crisis.”
Visit www.SBA.gov/Coronavirus for more information on SBA’s assistance to small businesses.