Small businesses received a bit of good news Thursday, April 3rd with two critical announcements for small businesses. The SBA announced that they will relieve principal and interest obligations of SBA 7(a) borrowers for six months beginning with payments after March 27, 2020. This will also apply to loans that have already taken a 6–month deferment, and payments shall begin at the conclusion of the deferment period unless the borrower chooses to have the payments begin sooner. Further guidance will be forthcoming from SBA.
USDA also announced a temporary exception for lenders to offer a 180–day deferral fo USDA backs loans. Additionally, we expect the USDA to offer its own stimulus loan relief in the coming days. CGA Law Firm will keep you updated with any additional announcements.