WASHINGTON — As access to credit and capital continues to tighten, the Small Business Administration is encouraging credit unions, banks and other lenders to extend temporary payment relief to 7(a) and 504 loan recipients.

The agency today reminded lenders that they have the authority on a case-by-case basis to issue three-month loan deferments. If a deferment longer than three consecutive monthly payments is needed for a loan, borrowers can work directly with their lenders who in turn will work closely with the SBA to identify the best solution, the agency said.

At the same time, SBA is asking its lenders not to broadly call borrower loans due to changing financial variables, such as fluctuations in personal credit scores, declining collateral values, and reduced home equity, which are currently affected by the disruption in the financial markets. The agency said it has issued a notice that will be distributed widely to its lenders and 120 field offices encouraging them to look at these cases individually and to work with individual borrowers in order to facilitate the longer term success of these small businesses.