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.
How Has COVID-19 Impacted Your Business?
NWBDA cares about its borrowers and how they have and are being impacted by COVID-19.
Please spend 5 minutes of your time and take our
SCORE mentors are rising to meet the many challenges faced by small business owners during this time of recovery from the coronavirus pandemic. SCORE is also offering a new real-time mentoring platform in addition to scheduled phone, video, and email options.
Navigating this unprecedented crisis is new for small business owners, so it helps to have trusted mentors who can provide guidance along the way. And SCORE knows you need advice quickly. This new method of mentoring shortens the time a client connects with a SCORE mentor from days to minutes.
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. Instructions from SBA that we do already have are:
- The CARES Act specifically states that SBA is to make the loan payments for six months on 504 loans in regular servicing and not on deferment beginning with the first payment due after the enactment (i.e., April 1). This does not include payments to your senior lender.
- SBA must make those payments NO LATER THAN 30 days after the date on which the first payment is due. The first payment is due April 1, thus SBA has until April 30 to make the payments on behalf of 504 borrowers.
SBA will make payments to your loan for the next six months. The 504 Loan Program Central Servicing Agent (CSA) has said that it will NOT apply an ACH debit to the borrower’s account to cover the loan payments due on April 1, 2020.
Here are some guidelines and explanations from the Senate Small Business Committee.
Small Business Payment Protection Program (under the CARES Act)
Statement by Secretary Mnuchin and Administrator Carranza on the Paycheck Protection Program and Economic Injury Disaster Loan Program regarding funds: HERE
The Payment Protection Program deadline has been extended to August 8. Find a lender: HERE
Forgiveness Application and Instructions: CLICK HERE
WA 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
Per the CARES Act (See above), deferment requests has been postponed until this 6-month period is final. If you are still in need of a deferment by the end of the 5th month (August), please contact us to request a deferment process.
CARES Act Fraud
Fraudsters have already begun targeting small business owners during these economically difficult times. Be on the lookout for grant fraud, loan fraud, and phishing.
Read more: HERE
NWBDA Client Highlight:
Chinook Enterprises, Eddyline Kayaks and Skagit Rotary have come together to deliver hundreds of desperately-needed face shields to local hospitals, elderly care facilities and others across Skagit County. HERE