Small business owners, you’ll be happy to know that the SBA has extended the EIDL deferment period from 24 months to 30 months from when the loan was first approved. We have the details here.

What is an EIDL?

The Economic Injury Disaster Loan program provided low interest loans to small businesses (those with 500 employees or less) and nonprofit organizations to help offset revenue loss due to COVID-19.

To date, the COVID EIDL program has allocated $351 billion in relief aid to 3.9 million borrowers.

What is the amounts of these loans?

As of September 2021, the COVID EIDL maximum eligible loan balance was increased from $500,000 to $2 million. Businesses can use these funds for any normal operating expenses, working capital and paying off debt.

What businesses are eligible for the deferment?

All COVID EIDL loans approved in calendar years 2020, 2021 and 2022 are eligible for the deferment extension.

What about interest?

During the deferment period, interest will continue to accrue on loans.

Can you make payments during the deferment period?

Yes, but payments are not required. You can make partial or full payments during the deferment period through www.pay.gov.

You are required to make regular principal and interest payments starting 30 months from the date the loan was first approved.

Important to note…

The SBA wants borrowers to be aware that deferments may result in balloon payments. A balloon payment is a large lump sum amount due at the end of a loan.

If you set up any established Preauthorized Debit (PAD) or recurring payments on the loan, the deferment will not stop them. During the extended deferment period, COVID-EIDL Borrowers with an SBA established PAD must contact their SBA servicing center to stop recurring payments. Borrowers can find COVID EIDL account balances and payment due dates in the SBA Capital Access Financial System (CAFS).

Questions? We can help. Contact us.