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Anyone with one, check out this letter I got from my lender. Something you need to look into.
As part of the CARES Act, the U.S. Small Business Administration (SBA) will cover monthly payments for all existing SBA 7(a) loans. This includes the principal, interest and any associated fees owed on your 7(a) loan. This begins with the first payment due on your loan after March 27, 2020. In simplest terms, you will owe nothing on your loan for the next six months!
Existing borrower with 7(a) loan: The SBA offers six months of payments of principal, interest and any associated fees beginning with the next payment due on the loan.
Existing borrower on deferment: The SBA offers six months of payments of principal, interest, and any associated fees beginning with the next payment due on the loan after the deferment period.
Existing borrower in construction phase: The SBA has not issued guidance on this. We will notify you when we get clarification.
The SBA will pay Live Oak Bank directly, on your behalf. If for some reason you, the borrower, continue to pay us during the covered period, we will notify you and allow you to either 1) return that amount back to you or 2) apply that amount to future loan payments, after the SBA’s six-month loan coverage.
When does the payment begin?
This process is for current payments beginning April 2020.
What if my payments are made automatically through ACH?
ACH has been turned off immediately for all borrowers who use ACH for SBA 7(a) loan payments.
Will my ACH payments automatically be turned back on, or do I need to reach out?
Live Oak will turn each customer’s ACH back on at the end of the six- or nine-month period.
What if I make loan payments by check each month?
If you currently send loan payments by check for your SBA 7(a) loan, please do not send checks during this time period. You may continue to send loan payments for non-SBA loans via check.
What if my loan payment is on auto-payment from my bank?
Please work directly with your bank to stop auto-payments to Live Oak Bank under the same guidelines listed above.
Do my other non-SBA 7(a) loans with Live Oak Bank count in this payment?
This only applies to existing 7(a) loans.
For questions about any of this information, please reach out to me.
Best,
Alex Henderson
Veterinary Business Analyst
Live Oak Bank
As part of the CARES Act, the U.S. Small Business Administration (SBA) will cover monthly payments for all existing SBA 7(a) loans. This includes the principal, interest and any associated fees owed on your 7(a) loan. This begins with the first payment due on your loan after March 27, 2020. In simplest terms, you will owe nothing on your loan for the next six months!
Existing borrower with 7(a) loan: The SBA offers six months of payments of principal, interest and any associated fees beginning with the next payment due on the loan.
Existing borrower on deferment: The SBA offers six months of payments of principal, interest, and any associated fees beginning with the next payment due on the loan after the deferment period.
Existing borrower in construction phase: The SBA has not issued guidance on this. We will notify you when we get clarification.
The SBA will pay Live Oak Bank directly, on your behalf. If for some reason you, the borrower, continue to pay us during the covered period, we will notify you and allow you to either 1) return that amount back to you or 2) apply that amount to future loan payments, after the SBA’s six-month loan coverage.
When does the payment begin?
This process is for current payments beginning April 2020.
What if my payments are made automatically through ACH?
ACH has been turned off immediately for all borrowers who use ACH for SBA 7(a) loan payments.
Will my ACH payments automatically be turned back on, or do I need to reach out?
Live Oak will turn each customer’s ACH back on at the end of the six- or nine-month period.
What if I make loan payments by check each month?
If you currently send loan payments by check for your SBA 7(a) loan, please do not send checks during this time period. You may continue to send loan payments for non-SBA loans via check.
What if my loan payment is on auto-payment from my bank?
Please work directly with your bank to stop auto-payments to Live Oak Bank under the same guidelines listed above.
Do my other non-SBA 7(a) loans with Live Oak Bank count in this payment?
This only applies to existing 7(a) loans.
For questions about any of this information, please reach out to me.
Best,
Alex Henderson
Veterinary Business Analyst
Live Oak Bank
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