Birmingham Disaster Loan Center Frequently Asked Questions

General Loan Information
Loan Payment Information
Loan Deferments
Treasury Offset Program
Subordinations
Releases

Taxes

General Loan Information

 

Q.  How do contact my Loan Officer?

A.   You can call 1-800-490-2498 (SBA Automated Disaster Loan Servicing number).  You will need to know your loan number to access the information.  The menus are in either English or Spanish. Press “0” to speak to a representative who can provide your requested information.

 

Q.  Need status of my loan with next due date and balance.

A.   There are a couple of ways to find this information.  First, you can call your Loan Officer in the Servicing Center that services your loan.  Your representative will answer any question in regards to your loan; if you are the obligor of the debt.  Second, you can call 1-800-490-2498 (SBA Automated Disaster Loan Servicing number).  You will need to know your loan number to access the information.  The menus are in either English or Spanish.

 

Q. How can I get my Due Date changed?

A.  Please call or write a letter explaining your situation to include your new Due Date to your Loan Officer in the Servicing Center that services your loan.  Your loan representative will review your loan with you and explain the necessary steps to get your Due Date Changed.

 

Q: Can I review my account payment history on line?

A: There are a couple of ways to find this information.  First, you can call your Loan Officer in the Servicing Center that services your loan.  Your representative will answer any question in regards to your loan; if you are the obligor of the debt.  Second, you can call 1-800-490-2498 (SBA Automated Disaster Loan Servicing number).  You will need to know your loan number to access the information.  The menus are in either English or Spanish. Press “0” to speak to a representative who can provide your requested information.

 

Q.  If I have a legal question concerning my disaster loan how can I obtain assistance?

A. Since legal questions/answers can be complex in nature, all questions directly related to your disaster loan or to the collateral attached to your loan should be serviced by your Loan Officer in the Servicing Center that oversees your loan.  However, please note that the SBA is prohibited from entering into third party disputes.

 

Q.  I have applied for a Federally Funded mortgage loan and I have been turned down because of my delinquent SBA loan; what can I do?

A.  You must pay the SBA loan in full to remove the CAIVRS alert from your loan.  Payment must be made to either SBA or Treasury, according to where your loan is serviced at the time.  CAIVRS is the Credit Alert Interactive Voice Response System; this system alerts other government agencies that you are applying with that you have an outstanding delinquent government loan.  Contact an SBA Treasury Offset representative for payoff information at 1-800-736-6048.

 

 

Loan Payment Information

 

Q.  How do I make my monthly payment?

A.   For your convenience, you may make your monthly payment by mail, by telephone, or by the Internet.  Automatic Draft Payments may also be set up to take payments monthly from your checking, savings, or credit card account.

To Mail:  Please place your loan number on the check and send it along with the coupon to: SBA, PO Box 740192, Atlanta GA 30374.  (Regular monthly payments should NOT be sent to your Servicing Center as this may result in a delay in processing.)

To Pay by Telephone:  There are a couple of ways to perform this action.  First, you can call your Loan Officer in the Servicing Center that services your loan.  {www.sba.gov/content/find-your-loan-servicing-center} Your representative will gladly take a payment for your loan.  Second, you can call 1-800-490-2498 (SBA Automated Disaster Loan Servicing number).  You will need to know your loan number to process the payment.  The menus are in either English or Spanish.  If you need personalized help, please press “0” to speak to a representative who can take your payment.  To use the automated system you will need your credit or debit card, including 3 digit Verification Number (usually located on the rear of the card).

To Pay by Internet:  The SBA can accept payments in the form of debit card, credit card or checking account using www.pay.gov.  This is a payment site run by the U.S. Department of the Treasury to allow payments for different federal agencies.  You may also set up recurring payments (auto-deductions) using this site.  (Please note that SBA does not own or operate the Pay.gov website.  Please call Pay.gov directly at 1-800-624-1373 should you need help.)

 

Q. Where do I mail my regular monthly payment if I have misplaced my statement?  

A. U. S. Small Business Administration, P. O. Box 740192, Atlanta GA 30374-0192 and please include your loan number on all correspondence.

 

Q.   How can I get assistance with repayment on my loan?

A.   If you are experiencing temporary financial problems, please call or write a letter explaining your situation to your Loan Officer in the Servicing Center that services your loan.  Your loan representative will review your loan with you and explain the necessary steps to get assistance or a temporary deferment of payments on your loan.

 

Q. Can someone explain the interest calculation on my loan and why so much is applied toward interest instead of Principal?

A.  Interest is calculated by the number of days between payments.  Example:  You have a $10,000.00 Principal Balance.  The Interest is 4%.  You would multiply .04 X 10000.00 = $400.00 for the year.  Divide $400.00 by 365 day for the year = $1.10 per day.  You made your last payment 30 days ago, so your current interest charge would be 30 X $1.10 per day = $33.00 per month.  This interest would be taken out of your payment and the remaining dollars would reduce your principal balance.

If you need additional information, please call your Loan Officer in the appropriate Servicing Center for assistance.  Your representative will review your loan with you and explain how interest is calculated and how payments are applied.

 

Q.  Do I have the option to pay a large sum of funds toward the Principal and request reduction of payments?

A.  You may always pay on your loan at any time.  However, for such sums to be applied strictly to principal, they must be submitted directly to your Servicing Center office with a letter that requests this amount be applied toward principal only.  You cannot do this if your loan is past due, or if you have outstanding interest that has accrued (such as the time period between when you were granted your disaster loan to the time the first payment comes due.)

Regarding payment reductions: your payment is set based on your ability to repay your disaster loan and not based on the amount you borrow.  Therefore, any permanent payment reduction can only be made upon furnishing complete financial statements to your Servicing center showing a decrease in your ability to pay.  You may contact your Servicing Center to receive an SBA Form 770 “Financial Statement of Debtor” if you are a homeowner.  If you operate a business that has an SBA disaster loan, you will need to supply the necessary financial statements and balance sheets to show your request is warranted.

 

Q.  May I make payments in advance?

A.  No.  If you make a large payment or a payment in advance, the due date will still NOT advance.  SBA requires loan payments every month as stated on your Promissory Note.   Call your Loan Officer in the Servicing Center that services your loan.  Your representative will explain how payments affect your loan.

 

 

Loan Deferments

 

Q.   How can I get assistance with repayment on my loan?

A.   If you are experiencing temporary financial problems, please call or write a letter explaining your situation to your Loan Officer in the Servicing Center that services your loan.  Your loan representative will review your loan with you and explain the necessary steps to get assistance or a temporary deferment of payments on your loan.

 

Q.  How do I request a Deferment of my loan?

A.  Please write a letter explaining your situation and the relief that you seek to your Loan Officer in the Servicing Center that services your loan.  Your loan representative will review your loan with you and explain the necessary steps to get a temporary deferment of payments on your loan.

 

 

Treasury Offset Program

 

Q.  How can I avoid my delinquent disaster loan being referred to the U.S. Treasury for enforced collection? 

A.  You must contact an SBA Treasury Offset Representative prior to your loan being referred to the Department of the Treasury to set up acceptable payment arrangements.  Once your loan has been referred to the U.S. Treasury, you must contact them at 1-888-826-3127 as SBA no longer services your loan.

 

Q.  Why is the U.S. Treasury contacting me about my SBA debt? 

A.  The U.S. Treasury’s Financial Management Service (FMS) serves as the government’s central debt collection agency, maintaining the Federal government’s delinquent debts. 

 

Q.  A collection agency is contacting me about my SBA loan; is this legitimate?

A.  Once a loan has been referred to the U.S. Treasury due to non-payment or default of the loan, the Treasury utilizes Private Collection Agencies to assist with debt collections. You may verify the collection agency’s information by contacting Treasury at 1-888-826-3127.

 

Q.  My tax refund was taken; can I get it back?

A.  SBA is required by the Debt Collection Improvement Act (DCIA) to refer all delinquent guarantors and obligors to the Treasury Offset Program. Before you receive a Federal payment/refund, the database is searched to see if you owe a delinquent debt.  If your debt is in the database, Treasury will reduce or withhold your Federal payment/refund to pay on your delinquent debt.  Treasury sends the withheld funds to SBA to cover your delinquent debt.  They will also send you a notice explaining why your Federal payment/refund was reduced. 

 

Q.  What kinds of Federal payments can be seized and applied to my debt?

A.  Tax refunds, wages, Social Security benefits, federal/military pay, federal/military retirements, contractor/vendor payments, travel advances, reimbursements, Railroad Retirement benefits, Black Lung (part B benefits) and other Federal payments not exempt by law or by action of the Secretary of the Treasury.  Federal law limits the amount that may be withheld from some types of Federal payments.

 

Q.  Why is the amount Treasury is collecting more than my SBA balance?

A.  Once a loan is referred to the U.S. Treasury, they may add up to 30% collection fees to your SBA balance.

 

 

Subordinations

 

Q.  I am refinancing a loan; how do I get the SBA to subordinate to my new lien?

A.  The SBA may approve requests to subordinate our loan position in certain situations such as a new refinance for a better rate and term.  All requests for subordination have to be determined on a case-by-case basis.  Regardless of the specifics of your request, we do require certain necessary information to make a decision.   You will find a list of requirements by clicking here. {url to packet page}  Please note that all information requested must be returned to SBA.  You may submit your request by fax, email, UPS, FedEx, or US Postal Service.  We will need 10-14 days to review and render a decision once all information has been submitted.

 

 

Releases

 

Q.  I have an offer to sell a piece of property that is listed as collateral on my SBA loan.  What must I do to get a release from the SBA? 

A. In certain situations SBA may approve an Exchange or a Partial Release of the collateral securing your loan. 

A1.  Under the sale of the property for which you received your disaster loan, you may be required to pay all net proceeds from the sale of that property to the SBA to lower your loan balance.  Even in situations where the sale is not for the disaster-damaged property, the SBA may require payment in order to effect the release. 

 

 

Taxes

 

Q. My spouse and I filed a joint tax return and our refund was offset for a debt that my spouse owes. What must I do to receive my portion of the refund?

A. Complete IRS Form 8379, which you can obtain by calling the IRS toll-free at (800) 829-3676 or by downloading the form from the IRS Web site at http://www.irs.gov/pub/irs-pdf/f8379.pdf.  For assistance with completing the form, call your local IRS office or the IRS toll-free number 1-800-829-1040.

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801 Tom Martin Drive , Suite #120
Birmingham, AL 35211
United States
Phone: 800-736-6048
Fax: 205-290-7765
Hours of Operation:
8:00 a.m. to 4:30 p.m. (CST) Monday through Friday