Starting immediately, the Small Business Administration (SBA) extends the deferral to existing borrowers of the Covid Economic Injury Disaster Loan (EIDL) program for a total of 30 months. This includes capital and interest payments on all approved COVID EIDL loans from the beginning.
The SBA extends deferral of EIDL loans
The SBA has made a concerted effort to assist small businesses with EIDL loans. Especially when it comes to ensuring that they apply for a write-off of these loans.
This time the SBA is providing assistance by extending it deferral of EIDL loans. As SBA Administrator Isabella Casillas Guzman put it, continue to rotate, adapt and grow. “
With this postponement, small business owners will have an extended period with increased flexibility to deal with the ongoing pandemic challenges and related problems. With $ 3.9 million in borrowers and more than $ 351 billion in aid, the deferrals will help literally millions of small business owners.
Elements of postponement
Following are the details of the postponement as described by the SBA.
- This deferral extension applies to all COVID-EIDL loans approved in the calendar years 2020, 2021 and 2022. The loans now have a total deferral of 30 months from the date of the Note. Interest will continue to accrue on the loans during the deferral.
- Borrowers can make partial or full payments during the deferral period but are not required to do so. The SBA recommends use www.pay.gov.
- The SBA will not send monthly payment notifications to SBA Form 1201. However, the SBA will send regular payment reminders via email.
- Existing COVID EIDL borrowers can find account balances and payment dates in the SBA Capital Access Financial System (CAFS) and learn how to create an account in the CAFS system by logging in to Capital Access Financial System (sba.gov).
- Delays may result in balloon payments. Deferment will not stop any Predictable Debit (PAD) or recurring loan payments. SBA COVID-EIDL Borrowers must contact the SBA Service Center to stop recurring payments during the extended deferral period. COVID-EIDL borrowers who have created a PAD through Pay.Gov or any other billing service are responsible for terminating recurring payments during the extended deferral period.
- Upon expiration of the deferral period, COVID-EIDL Borrowers must make regular capital and interest payments beginning 30 months after the date of the Note.
Leveraging SBA improvements
The SBA continues to make improvements to the EIDL program to help small businesses better cope with financial difficulties. The SBA raises the ceiling for COVID EIDL, introduces a 30-day exclusivity window, extends the appropriate use of funds and simplifies cooperation requirements.
Make sure you visit the SBA’s website regularly for the latest news. You can subscribe to SBA press releases for up-to-date information on SBA programs, services and financial aid.
If you have questions about the postponement, you can call the SBA COVID EIDL Customer Service Center toll free at 1-833-853-5638. If you are deaf or hard of hearing or have a speech disability, you can call 7-1-1 to access telecommunications retransmission services. You can also send an email DisasterCustomerService@sba.gov for further assistance and www.sba.gov/relief for additional information on COVID EIDL.
The center is open from Monday to Saturday from 8 a.m. until 8 p.m. ET with multilingual representatives. In addition, you can visit www.sba.gov/local-assistance to get in touch with SBA resource partners.