Do You Know Your Current Lending Options?
Is COVID-19 impacting your business? Do you currently have an SBA Loan?
Are you trying to understand your lending options to weather the economic slowdown for your team? Good news is that you likely have options. We put together some helpful tips from our lending partners, to help manage cash flows and take care of your employees:
Here’s 2 Steps you can take right now:
Step 1: We recommend you call your existing lender to understand your options.
A great place to begin the conversation is to inquire about a 90-day deferral on your current loan payments. Keep in mind that your loan will continue to accrue interest during this deferral, however the benefit of payment relief allows you the necessary capital to bridge the gap to cover other operating expenses for your business now.
Step 2: Once your deferral period is over, make sure you immediately start making payments on the loan to prevent the loan from becoming a non-accrual loan.
If you currently have an SBA loan, you will have the following options through your existing lender to repay the deferred principal and interest payments:
- Interest may be paid during the deferment period
- The deferred interest may be paid in a lump sum at the end of the deferment period;
- After the deferment period, the loan payment may be increased for a period of time necessary for the borrower to catch up to the original amortization schedule; or
- When payments resume, they may be applied first to accrued interest, then to principal.
Have additional questions? Contact your current lender today.
READ MORE ON THE U.S. SMALL BUSINESS ADMINISTRATION WEBSITE