Small Business

SBA Implements Automatic Deferment

The 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,” said SBA Administrator Carranza. “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.”

“Already the action taken last week by the SBA has helped fast-track declarations for New Jersey and other states and territories to receive a declaration so that small businesses statewide could immediately apply for economic injury disaster loans,” added SBA Atlantic Regional Administrator Steve Bulger who oversees the agency’s operations in New Jersey, New York, Puerto Rico and the U.S. Virgin Islands. “Today’s action that implements automatic deferments on existing disaster loans through the end of 2020 is just another example of how SBA is working hard to lift the burden off small businesses and to streamline the process for them during these most challenging times.”

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