SBA Encourages Lenders to Offer Loan Deferment Relief

In wake of the financial crisis, access to credit and capital has tightened, leaving many small business owners wondering how they will find the resources they need to keep their doors open. In a response to the tightening of credit markets, the SBA announced yesterday that it encourages its participating lenders to offer small businesses borrowers the flexibility they need to keep cash on hand.

"The SBA is here to help small businesses during these difficult economic times. We are encouraging our lending partners to follow suit by extending three-month payment deferments on their SBA guaranteed loans to qualified borrowers who need relief," said SBA Acting Administrator Sandy K. Baruah, according to this MarketWatch.com article. "We recognize that small business owners are faced with challenging decisions right now. By providing three-month deferments to qualifying borrowers who are struggling, our lending partners can help small business owners free up the capital they need to maintain their businesses."

Read on for more information about SBA's call for financial relief for small business, or click here for more information about SBA's programs for small business.