SBA Extends Deferment Period for COVID Economic Injury Disaster Loan

Date: March 22, 2022

The Small Business Administration (SBA) recently extended the deferment period on the COVID Economic Injury Disaster Loan (EIDL), due to the ongoing economic challenges facing small businesses. The EIDL is a disaster relief loan that has provided almost $400 billion in financial support for small business owners during the pandemic. The recent extension of the deferment period will provide additional relief to businesses struggling to recover from the pandemic, supply chain disruptions, as well as ongoing inflation.

The original extension was set for two years but the additional extension is giving borrowers 30 months. The thirty-month deferment extension will contain the following provisions:

  • This deferment extension is effective for all COVID-EIDL Loans approved in calendar years 2020, 2021, and 2022. Loans now have a total deferment of 30 months from the date of the Note. Interest will continue to accrue on the loans during the deferment.
  • Borrowers may make partial or full payments during the deferment period but are not required to.
  • The SBA will not send monthly SBA Form 1201 payment notices; however, the SBA will send regular payment reminders via email.
  • Existing COVID EIDL Borrowers can find account balances and payment due dates in the SBA Capital Access Financial System.
  • Deferments may result in balloon payments. The deferment will not stop any established Preauthorized Debit (PAD) or recurring payments on the loan. COVID-EIDL Borrowers with an SBA established PAD must contact their SBA servicing center to stop recurring payments during the extended deferment period.
  • COVID-EIDL Borrowers who have established a PAD through Pay.Gov or any other bill pay service are responsible for terminating recurring payments during the extended deferment period.

At the end of the deferment period, EIDL borrowers will be required to make regular principal and interest payments beginning 30 months from the date of the Note. EIDL borrowers can find information related to the EIDL program on the SBA website.

Updated March 22, 2022

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