Request a Deferral
The COVID-19 pandemic has created unprecedented difficulties for Pennsylvania’s citizens. As unemployment continues to rise and financial strains trickle down to every level of government, municipalities and individual borrowers are not immune to the unforeseen effects of the pandemic.
In response to those concerns, the Pennsylvania Infrastructure Investment Authority (PENNVEST) is offering all funding recipients in good standing, who are not currently under a loan workout or other forbearance arrangement, the option of deferring up to three (3) months of payments, subject to the terms set forth below (PENNVEST COVID-19 Relief Efforts).
PENNVEST is offering to temporarily defer payments to allow Pennsylvania citizens an opportunity to get back to work and communities and individuals an opportunity to recover from any financial setbacks associated with the COVID-19 pandemic.
The following terms and conditions apply:
- PENNVEST Funding Recipients who are interested in exercising the option to defer principal and interest payments for a period of up to three (3) months should submit the Request for Deferral Form.
- The offer to defer principal and interest payments is being extended to all Funding Recipients who are in good standing as of the date of the request for deferral and who are not currently under a loan workout agreement or forbearance arrangement. The Funding Recipient must submit a Request for Deferral Form no later than September 1, 2020 and the offer to defer payments will apply only to principal and interest payments made in the calendar year 2020, so the last payment eligible for deferral would be due December 1, 2020.
- The Funding Recipient will be permitted to defer principal and interest payment for up to three (3) consecutive months. The Funding Recipient will be asked to indicate what month they wish to implement the payment deferral. Please submit all requests by the 15th day of the month to defer payments for the following month in order to allow PENNVEST an opportunity to process your request. For example, to defer principal and interest payments starting June 1, 2020, please submit the request by May 15, 2020. PENNVEST will make every effort to process requests as quickly as possible; however, in the event a significant number of requests are received close to the monthly deadline to stop Automatic Clearing House (ACH) withdraws, requests may not be processed until the following month.
- Interest on the outstanding balance of the loan will continue to accrue during the deferral period. Upon the expiration of the deferral period, Funding Recipients will resume making payments in accordance with current loan amortization schedules. Funding Recipients will have the opportunity to repay the deferred amounts during the term of the loan. To the extent deferred amounts of principal and interest payments are not repaid throughout the term of the loan, they will be included in the final payment and paid on the maturity date, as defined under the Funding Documents. Late fee charges will not be assessed on the monthly payments being deferred.
- Electing to defer principal and interest payments for up to three (3) months will modify the repayment terms of the Debt Obligation by requiring Funding Recipients to repay the deferred amounts during the term of the loan or on the maturity date; therefore, prior to submitting the Request for Deferral Form, proper officials for the Funding Recipient should review the offer and take official action as required under your organizational documents. Funding Recipients will be asked to certify that such action has been taken in the Request for Deferral Form.
For more information on the PENNVEST COVID-19 Relief Efforts or deferment process, please contact Denise Zern, Loan Servicing Specialist at firstname.lastname@example.org