SBA Deferment

Are there any mortgage relief programs for businesses?    I have a commercial SBA mortgage of over 500K  with a variable interest rate of prime + 2.75.  My payments are about $5K a month.  My business has tanked with the economy, and for the first time I was not able to make my April payment.
 
I spent about 2 weeks at the end of March trying to get in touch with my mortgage co.   Unfortunately the company has recently been sold, so all the nice people I worked with to get the loan are no longer with the company.  I finally spoke to someone yesterday, and I asked about a deferment.  She said no, she could just do a payment plan, that would be better, but wants me to pay my full payment in May, plus an extra half payment in June and July. 

I’m afraid that, as large as the payments are, I won’t have the extra money in June or July- I could make the regular payment but not extra.  

I worked my tail off to be able to purchase my building, and want to do anything to keep it.   My rate just re-adjusted down to 8% with the rate cuts, which drops my payment to $4200, but it’s still a big chunk.

Sarah

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Hi Sarah,

According to 13 CFR Ch. 1 (1-1-03 Edition) , the “SBA may agree to defer payments on a business loan for a stated period of time, and use such other methods as it considers necessary and appropriate to help in the successful operation of the Borrower.  This policy applies to all business loan programs, including 504 loans.”

I would recommend contacting the SBA Answer Desk at 1-800 U ASK SBA.

Thanks for the questions and hope this helps.

Paul