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SBA Extends Deferment on COVID-19 EIDL and Disaster Loans Until 2022

  • Deferment period on Economic Injury Disaster Loan and other SBA disaster loans deferred until 2022
  • EIDL program was greatly expanded during the COVID-19 pandemic and continues to issue approximately $500 million in low-interest loans each week
  • Borrowers can opt to make partial or full payments during the deferment period

Summary by Dirk Langeveld

Businesses that received an Economic Injury Disaster Loan or other disaster assistance from the U.S. Small Business Administration can a bit longer before beginning payments.

The SBA has announced that it is extending deferment periods for all disaster loans, including the COVID-19 EIDL program, until 2022. All SBA disaster loans made in the year 2020 will have a first payment due date extended from 12 months to 24 months from the date of the note, and all SBA disaster loans made in the calendar year 2021 will have a first payment due date extended from 12 months to 18 months from the date of the note.

SBA disaster loans that were in regular servicing status as of March 1, 2020, previously had their deferment of principal and interest payment automatically extended through March 31, 2021. These borrowers will receive an additional 12-month deferment.

The SBA cautions that interest will continue to accrue on the outstanding balance of these loans during the deferment period. Borrowers can opt to voluntarily make full or partial payments while on deferment.

The EIDL program predates the pandemic and was originally set up to assist businesses that suffered temporary revenue losses due to hurricanes or other disasters. During the COVID-19 pandemic, it was expanded to apply to all U.S. small businesses, agricultural businesses, and nonprofits.

The SBA says this program has assisted more than 3.7 million small businesses during the pandemic. Lending in the program reached the $200 billion milestone in February, and the SBA continues to approve more than $500 million each week in EIDL loans.

EIDL loans are available at a 3.75 percent interest rate for small businesses or a 2.75 percent interest rate for nonprofit organizations and have a 30-year term. Borrowers or potential borrowers can submit questions on the program to or call the SBA’s Customer Service Center at 1-800-659-2955.

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