SBA Will Be Making April 1st Loan Payments
Great News! Mountain West has just been notified that the SBA will be making the April 1 payment for all SBA 504 loans. This will be the first of six monthly payments made on behalf of the business. These payments will not be pulled from your account starting tomorrow (April 1). We’ve included the correspondence from our trade organization (NADCO) at the bottom of the email if you’d like to read it in its entirety.
Here’s what the announcement means to you:
- Funds for the April payment will not be pulled from your account tomorrow. Under the CARES Act, SBA will pay the full monthly payment owed on all 504 loans in a regular servicing status (i.e. your loan is not currently on a deferment or modification). SBA will continue to make these loan payments on your behalf for the next 6 months.
- You do not need to reach out to Mountain West Small Business Finance for the above to take affect. It will happen automatically starting tomorrow (April 1, 2020).
- This is for the SBA 504 portion of your loan ONLY. As a reminder, an SBA 504 loan traditionally includes a loan from a bank/credit union, and an SBA loan – administered by a CDC, like Mountain West Small Business Finance. If you have concerns about the portion of your loan not covered by the SBA, we recommend reaching out to your bank/credit union directly.
We appreciate your patience as we work through getting this information out. It is a delicate balance trying to protect our borrowers and communicate what information we do, or do not, have.
Chief Operating Officer
Message from NADCO
The 504 Loan Program Central Servicing Agent (CSA) has relayed to NADCO that it will NOT apply an ACH debit to the borrower’s account to cover the loan payments due on April 1, 2020 for all 504 loans in regular servicing status. Under the CARES Act, SBA will pay the principal, interest and any associated fees that are owed on a 504 loan in a regular servicing status to the CSA within 30 days of April 1. SBA will continue to make these loan payments to the CSA for the 6-month period beginning April 1, 2020.
NADCO thanks the SBA and CSA for this information and their continued work on behalf of U.S. small businesses. Please be patient as we wait for additional guidance.
NADCO President & CEO