The Small Business Administration has decided to push back the deferment period for disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022.
The SBA said that all disaster loans made in 2020, including the EIDL program, will have a first payment due date extended from 12 months to 24 months from the date of the note. It is important to note that all SBA disaster loans made in 2021, including EIDL loans, will have a first payment due date increased from 12 months to 18 months from the date of the note.
Any current SBA disaster loans in regular servicing status as of March 1, 2020, will now have the additional 12-month deferment of principal and interest payments. They will resume their regular payment schedule on March 31, 2022, unless a borrower chooses to make payments while on deferment.
It is important to note that interest will continue to accrue on the outstanding balance of the loan throughout the duration of the deferment, according to the SBA.
In February, the SBA authorized over $200 billion in emergency funding in low-interest loans and is continuing to approve over $500 million each week for EIDL program.
For additional updates, please visit the SBA website at: sba.gov/coronavirusrelief.
As we continue to navigate through these times of uncertainty and adapt, we here are at The Foresight Companies want to be your source for all topics related to your business operations.
Please visit our COVID-19 Business Operations Resource Center frequently for updates.
*Please note that as information is updated and modified, terms and conditions are subject to change.