SBA Extends EIDL Deferral to 2022
/The U.S. Small Business Administration (“SBA”) extended the deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022. Originally no payments were required on EIDL loans for one year from the date of the note with the applicant receiving a payment schedule from the SBA after the loan is funded. Specifically, the SBA states:
All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 24-months from the date of the note.
All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.
COVID-19 EIDL loans have a 30-year maturity with a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations. Interest does accrue during the deferment period and borrowers may make full or partial payments if they choose.
As of March 4, 2021 the SBA reported that the EIDL has approved over $200 billion in EIDL loans to small businesses, non-profits and agricultural businesses. The SBA continues to approve over $500 million each week for the COVID-19 EIDL program. The American Rescue Plan Act of 2021 passed last week provided for an additional $15 billion for targeted EIDL payments. Eligible businesses may apply for an EIDL loan through December 31, 2021.