Economic Injury Disaster Loan (EIDL) Repayments Have Been Deferred Further
In an effort to provide more relief to small businesses, the SBA recently announced that they are making an additional six-month deferment of all principal and interest payments available to the 3.9 million existing borrowers of the COVID EIDL (Economic Injury Disaster Loan) program.
This deferment provides borrowers with a total of 30 months of deferment to support small business owners who’ve been impacted by the pandemic and could use additional flexibility.
SBA Administrator Isabella Casillas Guzman directed this deferment, acknowledging the importance of small businesses to our economic recovery as a nation.
While this announcement is good news for many small businesses who are still picking up the pieces, we’ve highlighted a few things you should know before changing your repayment plan.
What You Need to Know:
- Interest will accrue during the six-month deferment for all COVID-EIDL loans approved in 2020, 2021 and 2022 for a total of 30 months from inception.
- You can still make full or partial payments via pay.gov, but you don’t have to.
- While you won’t receive the monthly SBA Form 1201 payment notices, you will receive regular email payment reminders.
- You can access your payment information including account balances and due dates using the SBA Capital Access Financial System.
- Balloon payments could be required due to the deferments. If you’ve scheduled a Preauthorized Debit (PAD) payment or recurring payments, those payments will not be deferred or cancelled. You can cancel them manually by contacting your SBA servicing center, pay.gov or other bill pay service.
- Regular principal and interest payments will be required beginning 30 months from the date of your loan note.