SBA Announces Hardship Accomodation Plan for COVID EIDL Borrowers

  

The SBA just announced a new relief program for  PPP and COVID EIDL Borrowers.

Details and information about the new relief program can be found at 

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan/manage-your-eidl#:~:text=SBA%20is%20offering%20a%20Hardship,renew%20after%20the%20plan%20concludes.

The relief is an extension of the Hardship Accommodation Plan

The new Hardship Accommodation Plan will reduce borrowers monthly payments and help cash flow issues in the short term (6 months or longer) but it will not reduce the sum owed to the SBA or address a failed business that cannot make regular payments to the SBA. Borrowers with defaulted SBA loans should schedule a telephone call with Jim Shenwick, Esq.

The SBA is offering a Hardship Accommodation Plan for borrowers experiencing short-term financial challenges. Borrowers eligible for this plan may make reduced payments for a six-month period, with the option to renew after the plan concludes. Interest will continue to accrue, which may increase (or create) a balloon payment due at the end of the loan term.

Terms

Borrowers are required to pay a fixed percentage of their monthly payment amount. Payment reduction will vary based on past enrollment status.

The regular monthly payment amount will resume and be required after the six-month Hardship Accommodation period ends. 

Borrowers may be able to renew the Hardship Accommodation Plan, if necessary. The terms may vary for renewals.

Eligibility & Enrollment

Borrowers are eligible to enroll in the Hardship Accommodation Plan beginning 60 calendar days before their first payment due date. 

If your loan amount is less than or equal to $200,000:  

First-time enrollment: To enroll in the Hardship Accommodation plan, create an account or log in to the MySBA Loan Portal. Within the portal, click “Loan Summaries” in the toolbar. On the Loan Summary page, look for “Hardship Accommodation Plan” in the bottom right corner. Click “Learn more and enroll.”

Renewals: You may renew the Hardship Accommodation Plan one time through the MySBA Loan Portal. If you need renew more than once, please contact COVID-19 EIDL customer service (include Hardship Accommodation Plan in the email subject line), or send a message through the MySBA Loan Portal. You will be contacted by a loan specialist regarding requirements. 

If your loan amount exceeds $200,000:  

First-time enrollment and renewals: Please contact COVID-19 EIDL customer service (include Hardship Accommodation Plan in the email subject line) or send a message through the MySBA Loan Portal. You will be contacted by a loan specialist regarding requirements."

Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 

Please click the link to schedule a telephone call with me.

https://calendly.com/james-shenwick/15min

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