NWBDA’s Response to the COVID-19 Outbreak
In response to COVID-19 outbreak and the financial impact it is having on our borrowers, we have put together some options for your consideration. Please review and let us know if we can be of further assistance to you.
SBA Disaster Assistance– Learn about SBA’s Disaster assistance and loans.
Please be advised that this is not a loan product NWBDA can assist you with.
The CARES Act – The CARES Act was approved on Friday, March 27th. SBA is working on final details from the legislation into the Federal Register Notice and Program Guide. As soon as those instructions are published and made available to the lending community (including NWBDA), we’ll be able to answer your questions. In the meantime, here are some guidelines and explanations from the Senate Small Business Committee.
State Resources –
The Governor’s Office for the State of Washington has put together a list of resources to support Washington businesses impacted by COVID-19. The guidance provided offers information related to financial, export, employer and employee, and insurance assistance for businesses. See More
SBA 504 Loan – Payment Deferral Information
SBA may agree to defer payments on a 504 SBA loan for up to 6 months and will adjust future payment amounts to allow the borrower to catch up. The catch up period will depend on various factors including loan amount, loan term and borrower’s ability to repay.
Please note that if your monthly payments are deferred, the resumed payments will be increased (during the catch up period) to amortize the amount of payments missed. Those payments could be substantially more than you are currently paying.
Borrower must provide the following information in order for NWBDA to process the loan payment deferral request:
- Written Statement outlining the reason for the cash flow problem. Also include whether you are requesting a full deferral (no payments) or a modified/reduced payment and for what number of months.
- Correspondence (email is sufficient) from the Bank who holds your first trust deed loan that outlines the relief/deferment or modification they will be providing on your loan.
- Current financial information consisting of:
- Current financial statements from all guarantors (form 770 attached)
- 2018 and 2019 (or extension) Personal Tax Returns for all guarantors
- 2019 year-end business financial statement
- 2019 Business Tax Returns, if an extension was filed, copy of extension and evidence of any monies sent to the IRS
- Recent photos of the business – A few photos that include the outside signage and interior of the building(s).
Please understand the demand for loan payment deferrals will be great and very labor intense for our staff. Thank you for your patience during this time, we will do our best to assistance you as quickly as possible.