Updates on Loan Payments per the CARES Act 1112 for 504 Borrowers
SBA 504 Effective Rates for September 2020
25-year – 2.41% / 2.41% Refi
20-year – 2.37% / 2.37% Refi
10-year – 2.29% / 2.29% Refi
April – September Loan Payments:
Under the CARES Act, SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status beginning April 1, 2020 and continuing through September 2020. For those loans that were funded prior to April 2020, the last payment CARES Act 1112 will be made on September 1, 2020. In addition, loans funded in May through September will continue to receive a total of 6 months of payments, beginning immediately after their deferment, if granted.
Update on Loan Payments:
We are in hopes that Congress will be able to extend the payments by SBA, but we will not know until this information is approved by Congress and signed into law.
Here are some reminders for our lenders and our borrowers to prepare for the payments to resume on October 1, 2020:
- If the borrower has placed a stop payment for the ACH withdrawal for their automatic payment, they will need to release the stop payment.
- Make sure the borrower has not changed bank accounts. If so, they will need to submit a new ACH form to the CDC.
- Ensure sufficient funds are on deposit for the payment to be withdrawn on October 1, 2020.
Please contact Northwest Business Development Association with any questions.
SBA Tip on Life Insurance Term: When life insurance is required for a 25 year debenture, SBA will accept a 20 year life insurance term. The Authorization should include this condition and documentation of life insurance must be provided as a condition of closing.
Cybersecurity – Email Threats
Digital criminals are playing on anxieties and targeting remote workers. Attackers were quick to take advantage of the global pandemic, launching scams that played on peoples’ anxieties as well as attacks targeting remote workforces. Analysts saw a continued surge of “living off the land” (LotL) attacks — attacks which hijack legitimate services — for phishing and distributing malware. Also observed was a resurgence of banking trojans used by large-scale malware distributors.
Email attacks attempting to deliver malware while operating under the guise of the pandemic. Threat actors utilized a number of variations on the pandemic theme to accomplish their goals. Some of the more popular email threats were disguised to be from SBA! Please be extra cautious.
Other malicious emails being sent by attackers are using bank logos to attempt a number of different attacks.
View a full report that depicts the top attacks and scams: http://ow.ly/lLar50BnocQ
Business Development Officers
August’s Loan Fundings
NWBDA funded 6 new
projects for the total amount
August’s Loan Approvals
NWBDA approved 6 new
projects for the total amount
In the month of August,
create 54 new jobs
in the local communities
(800) 540-1748 (Toll Free)