Evergreen Business Capital as your partner and advocate is doing our best to communicate with you as we receive updated information from the Small Business Administration , the Treasury, and our trade organizations to help you determine what may be in your best benefit for your business in regards to your 504 Debenture or Community Advantage 7(a) loan.
Payment relief: A provision in the CARES Act that SBA will pay up to six months of loan payments on SBA 504 loans and 7(a) loans that are considered in regular servicing.
If you have contacted Evergreen Business Capital for a deferment on your loan we will be in touch with you specifically regarding this status.
For 504 Borrowers
SBA will pay this first loan payment to the Lenders within 30 days of the first loan payment due date after March 27, 2020.
Under the CARES Act, SBA will pay the principal, interest, and any associated fees, that are owed on a 504 loan in regular servicing status to the
Central Servicing Agent
within 30 days of April 1
. SBA will continue to make these loan payments to the
Central Servicing Agent
for the 6 month period beginning April 1, 2020.
For Community Advantage 7(a) Borrowers-
Under the CARES Act, 7(a) Borrowers are relieved of any obligation to pay the principal, interest and any associated fees that are owed on a 7(a) loan in a regular servicing status (including Community Advantage loans) for a 6-month period beginning with the first payment due on a loan after March 27, 2020. SBA will pay this first loan payment to the Lenders within 30 days of the first loan payment due date after March 27, 2020. If a Lender receives a loan payment from a Borrower after March 27, 2020, the Lender must inform the Borrower that it has the option of the Lender either returning the loan payment to the Borrower or applying the loan payment to further reduce the loan balance after application of SBA’s payment.
In addition, here are some other options from SBA for borrowers at this time:
- Paycheck Protection Program Loans (PPP) can be applied for through participating SBA lenders. These typically are the financial institutions you have a relationship with. These funds can be used for payroll and other specific purposes for your business. Contact your financial institution for more details regarding these loans and how to apply for this program.
- In response to previous disasters, the United States Small Business Administration created the Economic Injury Disaster Loan program (EIDL Loan.) The program offers up to $2 million per business. Businesses can apply at the SBA website here.
For further updates please check our website.
Evergreen Business Capital