Quick Deferment Program
for CDC Small Business Finance borrowers
We have created a special temporary monthly loan payment deferment program designed for businesses whose revenues are being affected by COVID-19. The program provides temporarily reduced loan payments to help you cover operating costs.
How to apply for a Quick Deferment
To be considered, please send the details listed below along with the required documents outlined in the Requirements Section to firstname.lastname@example.org
- Include your loan number in the subject line to speed up the process
- A detailed letter that clearly outlines the impact COVID-19 has had on your business
- Identify if your business is currently open or if it has been closed due to a government mandate or other reason. Also outline whether you are currently paying employees.
- Please share your plan post COVID-19 to help your business recover
- Required documents that align with your status and request as detailed in the Requirements Section below
Please read the below carefully to identify what documents you need to include with your deferment request.
Additional Deferment Request with 6 MONTHS OR MORE of total previous deferments:
If you are requesting an additional deferment on your loan and you already have one or more deferments totaling 6 months or more, Please provide:
- SBA Form 770
- Borrower’s last year-end financial statement
- Consolidated statement if the borrower has affiliates.
- Last 2 years Federal Tax Returns for borrower
- Last 2 years Federal Tax Returns for each guarantor
Additional Deferment Request with LESS THAN 6 MONTHS of previous deferments:
If you are requesting an additional deferment on your loan and you have had LESS THAN 6 months of deferment please provide:
- One of the following: your December 31, 2019 and your interim financial statements OR the past three months of your business bank statements
- A copy of your 2019 or 2020 Federal Tax return if you have not already submitted one to CDC Small Business Finance
- You will be notified when we receive your request
- We will do our best to send you an answer within five business days. Due to the influx of requests, in some cases it may take a little longer.
- If approved, your loan payment will be reduced to as low as 10% of your standard loan payment. For example, if your standard loan payment is $1,000 it could be reduced to as low as $100 during the deferment period. The emerging release of government relief programs will effect the length of time the deferment is offered. Please check with your loan officer for the most update information about the deferment time period.
How does the deferment affect my loan?
The program is designed to provide you reduced loan payments in the near term to help you during this time. The amount deferred will be amortized into your monthly payment in the future. Once your deferment is approved, you will receive an agreement which will specify the amount of your future payments.
- SBA 504 loans: The total amount that was deferred during the period will be amortized into your payments over the next five years. The amount that will be added in the future to your monthly payment will depend on the deferment amount.
- Working Capital loans: The total amount that was deferred will generally be amortized over the remaining term of your loan. The change in your monthly payment will be dependent on the amount deferred.
NOTE: Deferring payments on your SBA 504 or Working Capital loan will increase your monthly payments after the deferment period and increase the amount of interest you will pay over the term of your loan.