The SBA announced extended deferral periods for all of its disaster loans, including the COVID EIDL loans. Most small businesses that received an EIDL won’t have to start making payments on the loan until 2022.
The deferral details differ depending on the calendar year the disaster loan was made:
- For all SBA disaster loans made in 2020, the first payment due date is 24 months, extended from 12 months, from the date of the note.
- For all SBA disaster loans made in 2021, the first payment due date is 18 months, extended from 12 months, from the date of the note.
- For existing disaster loans approved prior to 2020 that were in regular servicing status as of March 1, 2020, the SBA granted an additional 12-month deferment of principal and interest payments
The latest deferral means that borrowers don’t have to resume their regular payment schedule until the payment immediately preceding March 31, 2022. This is the 3rd deferral extension for those loans. The SBA granted an automatic deferral of principal and interest payments through December 31, 2020, and then extended the deferral period through March 31, 2021.
Borrowers may voluntarily continue to make payments during the deferment, as interest will continue to accrue on the outstanding loan balance during this period. The loans have a 30-year maturity with interest rates of 3.75% for small businesses, including sole proprietors and independent contractors, and 2.75% for not-for-profits.
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