USDA Rural Development Deputy Under Secretary Bette Brand announced that the agency is expanding servicing options for guaranteed lenders due to the COVID-19 pandemic.
USDA is expanding upon the deferral flexibilities it announced Mar. 31, 2020, indicating that guaranteed lenders may also approve and make covered loans under the provisions of Section 1102 of the CARES Act. Section 1102 pertains to the Small Business Administration’s Paycheck Protection Program.
Guaranteed lenders must notify USDA Rural Development in writing of any covered loans made under Section 1102 of the CARES Act. Written notification will meet the standard for concurrence until Sept. 30, 2020. After that, lenders must resume obtaining agency approval in line with all applicable program regulations, forms and existing authorities, the agency said.
“We’re adding flexibilities to support our borrowers in this critical economic juncture, all with the goal of securing good-paying jobs,” added Josué E. Rivera, Rural Development State Director in Puerto Rico.
The deferrals apply to Business and Industry Loan Guarantees, Rural Energy for America Program Loan Guarantees, Community Facilities Loan Guarantees, and Water and Waste Disposal Loan Guarantees.