SBA 504 Loan Payment Deferments
March 22, 2020
Dear SBA 504 Borrowers:
The SBA has authorized loan payment deferment relief for borrowers that have been adversely affected by COVID-19 related economic disruptions. We are authorized to grant up to a 6-month deferment of principal and interest payments for your SBA 504 loan when you can show a need for such relief as a result of COVID-19 related economic disruptions. The following must be provided before a deferment is granted:
- Written statement outlining the temporary nature of your cash flow problem as a result of being adversely affected by COVID-19 related economic disruptions
- Deferment period requested up to 6 months
- Financial Statements and Tax Returns:
Current personal financial statement, preferably on SBA Form 770 (link below)
Last year-end financial statement for your business. If you have any affiliates, a current consolidated financial statement
Business Federal Income Tax Returns. A complete copy of the Borrower and each affiliate’s business federal income tax return that was filed with the IRS for the past two years or a written explanation as to why a copy is not available; and
Personal Federal Income Tax Returns. A complete copy of each owner &guarantor’s personal federal income tax return that was filed with the IRS forthe past two years or a written explanation as to why a copy is not available.
As a reminder, only the interest and principal portions of your payment will be deferred. The fees (SBA, CDC & CSA) portion of your payment will still be withdrawn from your account during the loan payment deferment period, but not the interest and principal portions.
If you have any questions regarding this offer, please call Karen Lovett in our office at (719) 471-2044. You can email the request along with your items to email@example.com.
Douglas F. Adams