SBA Defers Economic Injury Disaster Loan Payments
Businesses who received a COVID-19 Economic Injury Disaster Loan now have more time and flexibility to pay off their loan.
The U.S. Small Business Administration announced March 15 the agency is providing additional deferment of principal and interest payments for existing EIDL borrowers.
Businesses will have 30 months from the date the loan is approved before payments must be made.
There was a major overhaul of the COVID EIDL program in September, allowing businesses more flexibility and funding.
Recently supply chain issues and inflation challenges continue to impact small businesses who are recovering from the pandemic.
“This extended principal and interest deferment will provide financial relief to millions of small business owners—particularly those hardest-hit by the pandemic and related marketplace challenges—so they can continue to pivot, adapt, and grow,” SBA Administrator Isabella Casillas Guzman said.
SBA leaders said interests will continue to accrue on the loans during the deferment.
Though it is not required, small-business leaders can make payments during the deferment period.
Businesses should note that the deferment announcement will not stop any established pre-authorized debit or recurring payments on the loan.
COVID EIDL borrowers should contact their SBA servicing center to stop recurring payments or manually end recurring payments online.
Account balances and payment due dates are available on the SBA Capital Access Financial System site.
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