Small businesses that received a COVID-19 Economic Injury Disaster Loan (EIDL) are not required to make payments on the loan until 2022, the U.S. Small Business Administration (SBA) said.
In a news release issued March 12, the SBA announced extended deferment periods for all its disaster loans, including the COVID-19 EIDL loans. The deferral details differ depending on the calendar year of the disaster loan.
The SBA also granted an additional 12-month deferment of principal and interest payments for existing disaster loans approved prior to 2020 that were in regular servicing status as of March 1, 2020.
Borrowers may voluntarily continue to make payments during the deferment, as interest will continue to accrue on the outstanding loan balance during this period. Learn more.