SBA Procedural Notice: Additional Deferments for Disaster Home and Business Loans
Summary
SBA Procedural Notice, Control No. 5000-807838, effective March 26, 2021, to all SBA employees, on additional deferments for SBA disaster home and business loans adversely affected by the COVID-19 emergency, a second extension, and deferments for new SBA disaster loans. It grants additional deferments of principal and interest payments to existing disaster home and business loan borrowers, including COVID-19 Economic Injury Disaster Loan (EIDL) borrowers, because of the continued adverse effects of the emergency. It also provides guidance on deferments for new disaster loans.
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SBA Procedural Notice
TO: All SBA Employees CONTROL NO.: 5000-807838
SUBJECT: Additional Deferments for SBA
Disaster Home and Business Loans Adversely EFFECTIVE: March 26, 2021
Affected by the Coronavirus (COVID-19)
Emergency – Second Extension; and Deferments
for new SBA Disaster Loans
The purpose of this Notice is to grant additional deferments of principal and interest payments to
SBA’s existing disaster home and business loan borrowers, including COVID-19 Economic
Injury Disaster Loan (EIDL) borrowers, due to the continued adverse effects of the COVID-19
emergency and to provide guidance on deferments for new loans.
Disaster Home and Business Loans
In SBA Procedural Notice 5000-20012, Deferments for SBA-Serviced Loans (Disaster Home
and Business Loans and SBA-Purchased 504 Debentures) Adversely Affected by the
Coronavirus (COVID-19) Emergency, effective March 30, 2020, SBA provided an automatic
deferment of principal and interest payments through December 31, 2020, to its existing
borrowers of disaster home and business loans that were in regular servicing status on March 1,
2020. SBA Procedural Notice 5000-20072, Additional Deferments for SBA Disaster Home and
Business Loans Adversely Affected by the Coronavirus (COVID-19) Emergency, effective
December 22, 2020, extended the previous automatic deferment an additional three months
through March 31, 2021, for disaster home and business loan borrowers. In addition, SBA
granted a deferment of principal and interest payments through March 31, 2021, to any disaster
home and business loan borrowers that were in regular servicing status on December 1, 2020.
Due to the continued adverse effects of the COVID-19 emergency, SBA is further extending the
previous automatic deferment granted in SBA Procedural Notice 5000-20072 to provide these
loans an additional 12-month deferment. SBA will also provide a 24-month deferment to disaster
home and business loans approved in 2020, and an 18-month deferment to disaster home and
business loans approved in 2021.
PAGE 1 of 3 EXPIRES: 3-1-22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recyling Program Printed on Recycled Paper
I. SBA Disaster Home and Business Loans Covered under Previous Automatic
Deferments
SBA disaster home and business loans covered under the previous automatic deferments, as
authorized in SBA Procedural Notice 5000-20012 and SBA Procedural Notice 5000-20072
(collectively the “Notices” or “Procedural Notices”), will be granted an additional automatic
deferment of principal and interest payments through March 31, 2022.
Additionally, SBA will grant a deferment of principal and interest payments through March 31,
2022, to disaster home and business loan borrowers whose loans were approved prior to 2020
and were in regular servicing status as of March 1, 2021.
II. SBA Disaster Loans Approved in 2020
SBA will extend the deferment period for disaster home and business loans approved in calendar
year 2020 which were not covered under the previously issued Procedural Notices. This includes
COVID-19 EIDLs approved in calendar year 2020. Disaster home and business loans approved
in 2020 must be in Undisbursed or Regular Servicing status as of March 1, 2021, to be eligible
for the automatic deferment. SBA will provide these disaster loan borrowers with a total
deferment of 24 months from the date of the note.
Disaster loans approved in 2020 that have already commenced monthly payment pursuant to
their Loan Authorization will be deferred for a 12-month period starting with their Next
Installment Due Date.
III. SBA Disaster Loans Approved in Calendar Year 2021
SBA will extend the deferment period for all disaster home and business loans, including
COVID-19 EIDLs, approved on or after January 1, 2021. Disaster home and business loans
approved on or before March 1, 2021, must be in Undisbursed or Regular Servicing status as of
March 1, 2021. SBA will provide these disaster loan borrowers with a total deferment of 18
months from the date of the note.
IV. Guidelines Relating to These Deferments
Borrowers are advised that:
• Interest will continue to accrue on the loans during the deferment;
• For loans that were not covered under the previously authorized deferment, the automatic
deferment will be reflected on their next monthly payment notice (SBA Form 1201);
• Borrowers will not receive monthly payment notices (SBA Form 1201) during the
deferment period;
• Borrowers will be contacted via the SBA’s automated dialing system using the telephone
number associated with the SBA loan approximately one month before the automatic
deferment ends;
PAGE 2 of 3 EXPIRES: 3-1-22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recyling Program Printed on Recycled Paper
• Borrowers are strongly encouraged to create an account in SBA’s Capital Access
Financial System (CAFS) to monitor their loan status. Account enrollment instructions
are available here;
• The deferment will not stop any established Preauthorized Debit (PAD) or recurring
payment on the loan. Borrowers with an SBA established PAD will have to contact their
SBA servicing center to stop recurring payments during the deferment period. Borrowers
that have established a PAD through Pay.Gov or any other bill pay service are
responsible for terminating recurring payments during the deferment period;
• Borrowers preferring to continue making regular payments during the deferment period
may continue remitting payments during the deferment period. SBA will apply those
payments normally as if there was no deferment;
• After the automatic deferment period ends, borrowers will be required to resume making
regular principal and interest payments.
o For SBA disaster home and business loans covered under the previous Procedural
Notices authorizing automatic deferments, borrowers will be required to resume
making regular principal and interest payments after the automatic deferment
period ends March 31, 2022;
o For eligible SBA disaster home and business loans approved in 2020, borrowers
will be required to begin making regular principal and interest payments 24-
months from the date of the Note;
o For SBA disaster home and business loans approved in 2021, borrowers will be
required to begin making regular principal and interest payments 18-months from
the date of the note;
• Upon request, SBA will evaluate borrower circumstances on a case-by-case basis to
determine the nature and extent of further relief that may be appropriate for each
situation; and
V. Questions
Questions regarding this Notice should be directed to the appropriate Disaster Loan Servicing
Center:
Birmingham Disaster Loan Servicing Center
Email: birminghamdlsc@sba.gov
El Paso Disaster Loan Servicing Center
Email: elpasodlsc@sba.gov
Patrick Kelley
Associate Administrator
Office of Capital Access
PAGE 3 of 3 EXPIRES: 3-1-22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recyling Program Printed on Recycled Paper
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