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Temporary Payment Deferrals for Guaranteed Loan Programs Offered

Washington, D.C.
Release Date
Stakeholder Announcement

USDA Expands Provisions for Lenders to Offer Temporary Exceptions to Payment Deferrals for Agency Guaranteed Loan Programs

 WASHINGTON, April 8, 2020 – USDA Rural Development Deputy Under Secretary Bette Brand today announced that USDA is expanding servicing options for guaranteed lenders due to the COVID-19 pandemic.

USDA is expanding upon the deferral flexibilities it announced March 31, 2020. The expanded notice provides 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 Sept. 30, 2020, lenders must resume obtaining Agency approval in accordance with all applicable program regulations, forms and existing authorities. 

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.

For additional information, see page 19655 of the April 8, 2020, Federal Register.

Questions regarding this announcement may be directed to:


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