At the end of the deferment period, a repayment plan not exceeding 60 months is established for the deferred payments during which you will pay your regular payment and the deferment plan payment. Your proforma will be used to examine your repayment ability and possibly the repayment period.

The specifics regarding your deferment should be obtained directly from your CDC and the data in this article is meant to merely provide you with general information.

The following is the list of items that probably will be requested by your CDC:

1. Written request for deferment signed by the guarantors. The letter should reference your SBA loan number (appearing on your monthly Colson statement or the promissory note)

2. A letter detailing the following information:

   1. The problems the business is experiencing which have caused you to request a deferment

   2. Steps you have already taken towards solving the problem

   3. Additional steps you intend to implement to improve the situation

   4. How many people does your company currently employ

   5. Will your company need to reduce staff if deferment is not approved?

3. Status of the first trust deed mortgage loan:

   1. Is the loan current or past due?

   2. Did you request deferment on your first trust deed mortgage?

   3. Contact information for the lender  

4. For your business entity that is on the title for the property you will probably need:

   1. Cash flow projections for the next 12 to 24 months with narrative - The revenue projections will need to justify your ability to make loan payments plus the repayment plan payments. In your narrative explain how the projections for your business were derived.  Use the questions below as a guideline and add any additional information pertaining to your business that would be useful in explaining the projected numbers:

      1. Explain how you arrived at the projected numbers. Pay particular attention to Sales, Cost of Goods Sold, Employee Costs, and any other expense that is substantial for your business

      2. What is the basis for your figures

      3. What variables did you use to arrive at these numbers

      4. What are your plans for expanding marketing and advertising if any

2. Federal business tax return for 2008

3. 2008 year-end Profit and Loss statement

4. Interim Profit and Loss statement and balance sheet dated within 60 days

5. Business debt schedule (view sample form) - Ask your CDC for their form

5. For each individual guarantor:

   1. 2008 Personal Federal tax return

   2. Personal Financial Statement form 413

   3. Personal Budget Analysis (view sample form) - Ask your CDC for their form

If you feel that during the next few months you will benefit from the deferment, you should urgently contact your CDC (You may call the Colson customer service number and verify the contact information of the CDC that originated the SBA 2nd loan) and request the deferment package immediately. They may require additional information particular to their processing procedures. The information in this article should give you an expectation of your CDC's basic required package.