The U.S. Small Business Administration on Monday said it implemented automatic deferment of existing disaster loans through the end of the year.
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. Today’s announcement adds a list of growing actions the SBA is taking to support small businesses,” said SBA Administrator Jovita Carranza in a prepared statement.
“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,” Carranza said.
According to Matt Coleman, SBA Atlantic regional communications director, EIDL loans were previously made available to small businesses as a result of a drought from August 15 – October 16, 2019; in response to severe weather and flooding in June 2019 in Burlington, Camden and Gloucester counties; and in response to damage sustained from Superstorm Sandy. These and others have been deferred due to Carranza’s Monday action.
