EASTON — 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, are now automatic. The changes mean borrowers of home and business disaster loans do not have to contact SBA to request deferment, according to a Monday, March 23, SBA press release.
"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.
"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," added SBA Mid-Atlantic Regional Administrator Steve Bulger, who oversees the agency's operations in Pennsylvania, West Virginia, Virginia, Delaware, Maryland and the District of Columbia. "This is another way the SBA is working around the clock to find ways to assist small businesses."
All Maryland small businesses can now apply for the SBA disaster assistance following the declaration on Friday, March 20, which approved all Maryland counties as disaster relief eligible areas.
Eligibility is based on the financial impact of the COVID-19. The interest rate is 3.75% for small businesses, and 2.75% for private non-profit organizations. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship, a SBA press release on Friday, March 20 stated.
For more information visit SBA.gov/Coronavirus.