We have an SBA loan that was converted to the reduced interest rate of 6% due to the owner becoming active duty because of the current war in Afghanistan. I need to know if the SBA loan actually qualifies under the SSCRA and what exactly does qualify in exception of consumer loan situations? Can someone assit me in which direction to find this information?

Thanks

Tina,
If you send me your e-mail addess (to lcallaway@ssnb.com) I will send you our policy and procedures.
Leslie

Based on the Cathey v. BancorpSouth Bank case I would believe it is. I don't know why any government guaranty would reduce the SSCRA rights a person has and have never seen that mentioned as an exclusion.

You got it tsweet@goldcountrynb.com, and thanks

Student loans are the only exclusion, I believe.

There is an exclusion in the Higher Education Act that excludes Federally guaranteed loans. However, any private credit based education loans would still be impacted.

Thank you for the information. You have all been helpful.

The SBA published some guidance on 1 issue under SSCRA thats available on the Internet at:

http://www.sba.gov/opiniondigests/od161.html

The opinion deals w/the applicability of the Act when the orig borrower is a sole proprietor (a doctor) that then forms a partnership w/another doctor before the orig borrower is called to active duty.