New deferment period for EIDL COVID-19 loans
The U.S. Small Business Administration (SBA) recently announced an additional deferment period of principal and interest payments for existing COVID-19 Economic Injury Disaster Loans (EIDL). Borrowers have a total of 30 months of deferment period from loan origination on all COVID EIDL loans. This is a change from the previous deferral period of 24 months.
Below you will find some additional information about the new deferment period on EIDL loans:
- This deferment period is effective for all COVID EIDL loans originated in 2020, 2021 and 2022.
- Please note that interest will continue to accrue during the deferment period.
- Borrowers can continue to make partial or full payments during the 30 month deferment period, but are not required to do so.
- The SBA is now recommending that borrowers use www.pay.gov to make their payments.
- The SBA is not sending monthly SBA Form 1201 payment notices. However, the SBA will send regular payment reminders via email.