SBA Extends Deferment Period for COVID-19 EIDL and Other Disaster Loans

The U.S. Small Business Administration has announced extended deferment periods for all disaster loans, including the COVID-19 Economic Disaster Lending (EIDL) program, until 2022.

  • All SBA disaster loans made during calendar year 2020, including COVID-19 EIDL, will have an extended first payment due date from 12 months to 24 months from the date of Note.
  • All SBA disaster loans made during the 2021 calendar year, including COVID-19 EIDL, will have an extended first payment due date from 12 months to 18 months from the date of Note.

Existing ASB disaster loans approved before 2020 in regular service status as of March 1, 2020, have been subject to automatic deferral of principal and interest payments until December 31, 2020 This initial deferral period was then extended to March 31, 2021. Additional 12 -A monthly deferral of principal and interest payments will automatically be granted to these borrowers. Borrowers will resume their regular payment schedule with payment immediately preceding March 31, 2022, unless the borrower voluntarily continues to make payments during the deferral. It is important to note that interest will continue to accrue on the outstanding loan balance for the duration of the deferral.

“Small businesses, private non-profit organizations and agricultural businesses, including self-employed workers, contractors and construction workers, continue to navigate a very difficult economic environment due to the continued impacts of the coronavirus pandemic. COVID-19, as well as historic severe winter storms. in 2020, ”said Acting SBA Administrator Tami Perrillo.

“The EIDL COVID-19 program has helped more than 3.7 million small businesses, including nonprofits, sole proprietorships and independent contractors, across a wide range of industries and lines of business , through this difficult period, ”continued Perrillo.

The SBA continues to work to make all previously approved coronavirus pandemic stimulus funding available and to administer new targeted programs related to the provisions of the Economic Assistance to Small Business Act of 2020, organizations to nonprofit and hard-hit places (the law on economic aid) as quickly as possible. .

“The American people and small business owners across the country need our tireless efforts and dedication to provide this vital financing to those who need it badly, and SBA will not rest until we put in implements President Biden’s “US Rescue Plan” and its allocated additional targeted programs and funds. for US small businesses and nonprofit communities, ”said Michael Roth, senior advisor to the SBA.

COVID-19 EIDL loans are offered on very affordable terms, with an interest rate of 3.75% for small businesses and 2.75% for nonprofits, with a maturity of 30 years. Interest continues to accrue during the deferment period and borrowers can make full or partial payments if they wish.

In mid-February 2021, the SBA took an important step in the success of the COVID-19 EIDL program, approving more than $ 200 billion in emergency financing in the form of low-interest loans, providing working capital for small businesses, nonprofits, and farm businesses to survive the severe impacts of this catastrophic and historic time throughout the United States of America and its territories. The SBA continues to approve more than $ 500 million each week for the COVID-19 EIDL program.

Questions about the SBA COVID-19 EIDL and Disaster Loan Payments can be answered by emailing [email protected] or by calling the SBA Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339).

To access more business news, visit NJB News Now.

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