The U.S. Department of Agriculture Rural Development has taken several actions designed to help rural residents, businesses and communities affected by the COVID-10 outbreak.
For the Rural Development Guaranteed Loan Program, lenders may offer 180-day loan payment deferrals without prior angency approval for Business and Industry Loan Guarantees, Rural Energy for America Program Loan Guarantees, Community Facilities Loan Guarantees and Water and Waste Disposal Loan Guarantees.
The USDA has expanded the deferral flexibilities it announced March 31. Guaranteed lenders may also approve and make covered loans under the provisions of the CARES Act’s Section 1102, which pertains to the Paycheck Protection Program of the Small Business Administration.
Guaranteed lenders must notify USDA Rural Development in writing of any covered loans made under Section 1102. After Sept. 30, lenders must resume obtaining agency approval in accordance with all applicable program regulations.
Effective immediately upon receiving a request for a forbearance from a borrower who attests to financial hardship directlyor indirectly caused by COVID-19, lenders shall provide immediate forbearance of the borrower’s Single Family Housing Guaranteed Loan payment for a period of up to 180 days. The initial forbearance period may be extended up to an additional 180 days at the borrower’s request.
Effective March 19, borrowers with USDA single-family housing Direct and Guaranteed loans through Rural Housing Service are subject to a moratorium on foreclosure and eviction for 60 days. This applies to the initiation of foreclosures and evictions as well as the completion of foreclosures and evictions in process.
The USDA has waived or relaxed parts ot ehe application process for SIngle-Family Housing Direct Loans, including site assessments, and has extended the time period that certifications of eligibility are valid.
Direct Loan borrowers experiencing more than a 10 percent loss of income can request a Payment Assistance package to determine eligibility for payment assistance or for more assistance than currently received. Such borrowers are eligible for Moratorium Assistance for those experiencing medical bills not covered by insurance or job loss because of COVID-19. Those qualifying can receive a moratorium on house payments for a specific period.
Direct Loan questions should be directed to USDA customer service center at 800-414-1226 from 7 a.m.-5 p.m. EDT weekdays or by visiting https://www.rd.usda.gov/contact-us/loan-servicing
The department reminds everyone that call volume and waits are high at this time.