SBA Announces Another EIDL Extension for Business and Not-For-Profits
SBA announces another loan repayment EIDL extension for business and not-for-profits.
On March 16, 2022, the US Small Business Administration (SBA) announced an extension on COVID Economic Injury Disaster Loan (EIDL) repayment. The COVID EIDL program has allocated more than $351 billion in relief aid, in the form of low-interest loans to 3.9 million small businesses and not-for-profits. The 30-year loans have interest rates of 3.75% for small businesses, which extends to sole proprietors and independent contractors, and 2.75% for not-for-profits.
Key Points of the Most Recent EIDL Extension:
(Noteworthy in the first point is that the extension does not suspend the accrual of interest, nor in any way reduce the amount of the loan. Interest accrues during the deferral period.)
- This deferment extension is effective for all COVID-EIDL Loans approved in calendar years 2020, 2021, and 2022. Loans now have a total deferment of 30 months from the date of the Note. Interest will continue to accrue on the loans during the deferment.
- Borrowers may make partial or full payments during the deferment period but are not required to. The SBA recommends using www.pay.gov.
- Deferments may result in balloon payments. The deferment will not stop any established Preauthorized Debit (PAD) or recurring payments on the loan. COVID-EIDL Borrowers with an SBA established PAD must contact their SBA servicing center if they wish to stop recurring payments during the extended deferment period. COVID-EIDL Borrowers who have established a PAD through Pay.Gov or any other bill pay service are responsible for terminating recurring payments during the extended deferment period.
- After the deferment period ends, COVID-EIDL Borrowers will be required to make regular principal and interest payments beginning 30 months from the date of the Note.
Administrator Isabella Casillas Guzman stated, “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.”
You can read the full contents of the announcement in this SBA news release.
Other articles of interest that look at COVID-19 specifically as related to executive benefits include:
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