As discussed in our previous blog, an SBA loans used by businesses in the area that meet small business underwriting criteria. Recently the Small Business Administration announced it is providing relief to current 7(a), 504, and microloans that are in regular service. This includes loan disbursed prior to September 27, 2020. Relief comes in the form of six months of principle, interest, and associated fees owed by borrowers. There are other relief loan programs to help cash flow. Commercial Mortgage Depot (CMD) helps businesses thrive even in COVID-19 around New York, New Jersey, Connecticut, and Pennsylvania. This week, our Clifton, NJ team is here to discuss the SBA 504 COVID-19 debt relief program!

Using SBA Debt Relief to Help Your Business in COVID-19

The United States Small Business Administration (US SBA) will notify you if you qualify for this relief. You do not have to apply. You may qualify if your loan was not in deferment. If you did make any payment after March 27, 2020—you can request to get the payment refunded or you can apply it to a future payment after the six month period ends. Contact your lender directly with any questions. Please note the relief is not available for Paycheck Protection Program (PPP) Loans or Economic Injury Disaster Loans.

SBA Relief for Disaster Serviced Loans

If your home or business SBA Disaster Loan was in regular service after March 1, 2020, then you may qualify for automatic deferment through December 31, 2020. Below are some tips to understand how automatic deferment works:

  • You will continue to receive loan payment notices that reflect no payment is due.
  • Interest will continue to accrue on the loan.
  • Deferment does not cancel any automatic debit payments scheduled. You must cancel this on your own directly.
  • If you like, you can continue making payments and these will be applied as usual to your loan.
  • After the deferment period ends, you must resume making payments and re-establish your automatic debits.

SBA Express Bridge Loans

Another way that the SBA is supporting businesses during COVID-19 is through express bridge loans. These enable you to access up to $25,000 quickly. To take advantage, you must already have a relationship with an SBA express lender. The loan can be a term loan, or it can be used as a bridge while waiting for approval on an Economic Injury Disaster Loan. You can repay the bridge loan in full or in part by proceeds from your Economic Injury Disaster Loan, as well.

Commercial Mortgage Depot (CMD) is here to help businesses in New York, New Jersey, Connecticut, and Pennsylvania during COVID-19. Speak to our Clifton, NJ team about using these great SBA Loan relief programs to help your business today!

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