In 2021, over 61,000 small businesses received $44.8 billion in funding through the Small Business Administration (SBA). While the economy appears strong, many small businesses continue to struggle, especially those that have already taken out loans. If you’re a small business owner facing possible default on your SBA loan, you need to know your options. Getting an SBA loan deferment could mean the difference between staying afloat or going under. So, what does it take to qualify for an SBA loan deferment, and how long can it allow you to postpone payments? In this article, we’ll show you what you need to know to qualify for an SBA loan deferment and keep your business afloat.
What is an SBA Loan Deferment?
When you applied for an SBA loan, a private lender issued the money, not the SBA. The SBA only backed the lender. An SBA loan deferment means that you can ask your lender to temporarily defer payments on the loan. While most COVID relief loans came with deferment options, you must understand why a loan deferment might be granted. The SBA wants to see your business functioning, but they also understand that external factors might impact your ability to make money. For example, natural disasters, global pandemics, or construction near your business can all affect your business’s ability to earn revenue. If your business is facing an external obstacle beyond your control, an SBA loan deferment might get granted.
Loan Deferment Options
Plan ahead and anticipate when you might need help. Your loan deferment options will depend on why you need a deferment and the type of SBA loan you currently hold. For example, many COVID-EIDL loans came with provisions for deferment. Your lender, not the SBA, grants the SBA loan deferment. However, if you anticipate an issue making your payments, you need to communicate with your lender. Be open with them, and they’ll be more willing to work with you. An SBA lender can provide a deferment for up to six months without any communication with the SBA.
Covid – EIDL Deferment
COVID-EIDL loans were directly issued by the SBA from 2020-2022 and came with built-in deferment as part of the loan terms. If you received a Covid-EIDL loan during this time, you have an automatic 30-month deferment from when the loan was issued. It’s important to note that while you can defer payment on this type of loan for that period, the interest on the loan will continue to accrue.
SBA Loan Default
If you default on an SBA loan, the SBA has several ways to seek payment on past due debts, including administrative wage garnishment, tax refund offset, salary offset for federal employees, and administrative offset. It’s important to understand the SBA loan default statute of limitations, which is six years.
Get Help With Your SBA Loan
If you’re facing hardship in your business and don’t know your options, seek legal help. An SBA attorney specializes in this type of problem and can work to negotiate on your behalf. An SBA loan deferment can provide the help your small business needs if you’re facing tough times. Contact SolveDebt today to connect with an attorney who can help you keep your business afloat.
Why Choose SolveDebt?
Millions of dollars in SBA and Treasury debts resolved via offer in compromise and negotiated repayment agreements without our clients filing for bankruptcy or facing home foreclosure. Our attorneys are authorized by the Agency Practice Act to represent federal debtors nationwide before the SBA, the SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service. Our attorneys have successfully defended millions of dollars in Treasury debts against administrative wage garnishment, Treasury Offset Program Resolution, cross-servicing disputes, private collection agency representation, compromise offers, and negotiated repayment agreements. We have a deep understanding of the law and exhibit professionalism in everything we do.
Get Your SBA Loan Deferment with SolveDebt
Don’t wait until it’s too late to seek help with your SBA loan. SolveDebt has a team of experienced SBA attorneys who specialize in helping small businesses facing financial hardship. We understand the emotional toll that financial struggles can take on a business owner, which is why we use compelling language and emotionally charged words to create engaging articles that provide valuable information. We use show don’t tell language to help you truly understand what it takes to qualify for an SBA loan deferment. Contact us today to connect with an attorney who can help you keep your business afloat.
Trust SolveDebt for Your SBA Loan Deferment Needs
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We understand that small businesses have faced more than their share of challenges working through a global pandemic. That’s why we are committed to providing personalized support to help you navigate the complexities of SBA loans and deferments. Our attorneys have a deep understanding of the law and a wealth of experience negotiating with lenders on behalf of small businesses.
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If you’re facing financial hardship, don’t wait until it’s too late. Contact SolveDebt today to learn more about how we can help you keep your business afloat with an SBA loan deferment. Trust us to provide the personalized support and expertise you need to navigate the complexities of SBA loans and deferments.