One of the frequently asked questions from the local business community in the wake of the recent COVID-19-related disruptions has concerned the availability of Small Business Administration assistance loans. We will continue to update this blog with information about SBA loans and other assistance programs, but in the meantime we wanted to publish this helpful email from REDCO President Joe DiStefano about the process/status:
The SBA’s Disaster Loan Assistance is a direct loan from the SBA. However, most of Virginia is not on that list of eligible areas yet. I expect we will be any time/day now. Once Virginia is listed, businesses can apply directly with the SBA. Here are two links for you:
This is a link about the program itself
This link allows you to track when Virginia is listed and apply for loan assistance
Outside of that, please encourage your businesses to contact their bank lenders directly and work out payment modifications for any loans they may have. Banks have the ability to reduce loan payments (e.g. put on an interest-only period for a period of time) to help relieve cash-flow constraints these business will have for the next several months, and I know banks actively working through that with their clients.
At REDCO, our entire portfolio consists of commercial mortgages to small businesses throughout Virginia, all facilitated through the SBA’s 504 Program. We have full authority to modify these loan payments from a full payment deferment for 6 months, to interest-only, etc. We’re actively engaged with several of our business clients now to help them out and have made this a priority for our office. If you know any businesses with a 504 loan and think they may need assistance, please let them know to contact us or the other organizations like ours that may have helped them (there are two others in the state: Business Finance Group and 504 Capital Corp.). If they don’t know which of the three they worked with, have them contact me and I’ll help them out.