The U.S. Small Business Administration announced on Monday changes to help borrowers still paying back SBA loans from previous disasters.
Borrowers will not have to contact the SBA to request deferments, as they all have turned automatic through Dec. 31, 2020.
“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,” Jovita Carranza, SBA administrator, said.
“Today’s announcement adds a list of growing actions the SBA is taking to support small businesses. 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 and changing the terms of new economic injury loans to allow for one-year deferments. We are working around the clock to find ways to assist small businesses and today’s action is one step in this process.”
Steve Bulger, who oversees the agency’s operations in New Jersey, New York, Puerto Rico and the U.S. Virgin Islands, said the action is just another example of how SBA is working hard to lift the burden off small businesses and streamline the process for them in challenging times.