The U.S. Small Business Administration has announced extended deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022. Loans made in calendar year 2020 will have a first payment due date extended from 12 months to 24 months from the date of the note. Those loans made in calendar year 2021 will have a first payment due date extended from 12 months to 18 months from the date of the note, the SBA said.
Existing SBA disaster loans approved prior to 2020 in regular servicing status as of March 1, 2020, received an automatic deferment of principal and interest payments through Dec. 31, 2020. This initial deferment period was subsequently extended through March 31, 2021. An additional 12-month deferment of principal and interest payments will be automatically granted to these borrowers. Borrowers will resume their regular payment schedule with the payment immediately preceding March 31, 2022, unless the borrower voluntarily continues to make payments while on deferment. It is important to note that the interest will continue to accrue on the outstanding balance of the loan throughout the duration of the deferment.
“Small businesses, private nonprofits and agricultural enterprises, including those self-employed individuals, contractors and gig workers, continue to navigate a very difficult economic environment due to the continued impacts of the coronavirus COVID-19 pandemic, as well as historic severe winter storms in 2020,” SBA Administrator Tami Perrillo said. “The COVID-19 EIDL program has assisted over 3.7 million small businesses, including nonprofit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors, through this challenging time.”
In mid-February, the SBA reached a milestone in the COVID-19 EIDL program by approving over $200 billion in emergency funding in low-interest loans, providing working capital funds to small businesses, non-profits and agricultural businesses to survive the severe impacts of this catastrophic and historic period within the entire United States of America and its territories, the SBA said. SBA continues to approve over $500 million each week for the COVID-19 EIDL program.
Questions on SBA COVID-19 EIDL and disaster loan payments can be answered by email at DisasterCustomerService@sba.gov or by calling SBA’s customer service center at 1-800-659-2955.
