USDA Implements Immediate Measures to Help Rural Residents, Businesses and Communities Affected by COVID-19

Brownwood News – USDA Rural Development has taken a number of immediate actions to help rural residents, businesses and communities affected by the COVID-19 outbreak. Rural Development will keep our customers, partners, and stakeholders continuously updated as more actions are taken to better serve rural America.

Visit www.rd.usda.gov/coronavirus for information on Rural Development loan payment assistance, application
deadline extensions, and more.

Rural Development Guaranteed Loan Programs

Effective March 31, 2020 until September 30, 2020, lenders may offer 180-day loan payment deferrals without
prior agency 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. For
additional information, see page 17721 of the March 31, 2020, Federal Register.

* On April 8, 2020, USDA expanded upon the deferral flexibilities it announced March 31, 2020. 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.

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

* Effective immediately upon receiving a request for a forbearance from a borrower who attests to financial
hardship directly or 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. In addition, the
initial forbearance period may be extended up to an additional 180 days at the borrower’s request.

* Effective period: Lenders may approve the initial 180-day COVID-19 Forbearance no later
than October 30, 2020.