SBA Extends Deferral Period for All Disaster Loans to 2022
WASHINGTON DC – The U.S. Small Business Administration extended the deferral periods for all disaster loans, including the COVID-19 Economic Disaster Lending Program (EIDL), until 2022.
- All SBA disaster loans made during the 2020 calendar year, including COVID-19 EIDL, will have an extended first payment due date from 12 months to 24 months from the date of payment. 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 payment. note.
Existing SBA Disaster Loans Approved Before 2020 in regular service on March 1, 2020, received an automatic deferral of principal and interest payments until December 31, 2020. This initial deferral period was then extended until March 31, 2021. An additional 12-month deferral principal and interest payments will be automatically 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, contractors and concert workers, continue to navigate a very difficult economic environment due to the continuing 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 proprietors and independent contractors, across a wide range of industries and lines of business, through this difficult time, Perrillo continued.
The SBA continues to strive to make available all Fund the recovery of the coronavirus pandemic and administer as quickly as possible the new targeted programs linked to the provisions of the 2020 law on economic assistance to small businesses, non-profit organizations and sites (the Law on economic aid) hard hit.
“The American people and small business owners across the country need our tireless efforts and dedication to deliver this vital financing to those who need it most, and the SBA will not rest until we have implemented President Biden’s “US bailout” and its additional targeted programs and funds. allocated to US small businesses and nonprofit communities, ”said Michael Roth, senior advisor to the SBA.
COVID-19 EIDL loans are available on very affordable terms, with an interest rate of 3.75% for small businesses and 2.75% for non-profit organizations, with a maturity of 30 years. Interest continues to accrue during the deferral period and borrowers can make full or partial payments if they wish.
In mid-February 2021, the SBA took a milestone in the success of the COVID-19 EIDL program, approving over $ 200 billion emergency financing in the form of low-interest loans, providing working capital to small businesses, nonprofits and farm businesses to survivee the serious impacts of this catastrophic and historic period on the whole of 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 SBA COVID-19 EIDL and Disaster Loan Payments can be answered by email at [email protected] or by calling the SBA Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339).