Elmhurst Chamber Of Commerce: SBA Defers COVID-19 EIDL Repayments To 2022

Press release from the Elmhurst Chamber of Commerce:

John Quigley

Mar 15, 2021

Following United States President Joseph R. Biden’s signing the American Rescue Plan Act of 2021 into law on March 12, the U.S. Small Business Administration (SBA) announced extended deferment periods for all Coronavirus (COVID-19) federal disaster loans until 2022.

All SBA disaster loans made in calendar year 2020, including COVID-19 Economic Injury Disaster Loans (EIDL), will have a first payment due date extended from 12-months to 24-months from the date of the note.

All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.

Existing SBA disaster loans approved prior to 2020 in regular servicing status as of March 1, 2020, received an automatic deferment of principal and interest payments through December 31, 2020.  This initial deferment period was subsequently extended through March 31, 2021.  An additional 12-month deferment of principal and interest payments will be automatically granted to these borrowers.  Borrowers will resume their regular payment schedule with the payment immediately preceding March 31, 2022, unless the borrower voluntarily continues to make payments while on deferment.  It is important to note that the interest will continue to accrue on the outstanding balance of the loan throughout the duration of the deferment.

COVID-19 EIDL loans are offered for a 30-year maturity terms at a 3.75 percent interest rate for small businesses and 2.7 percent interest rate for not-for-profit organizations.

The American Rescue Plan Act provides additional relief for the nation’s small businesses and hard-hit industries for programs the SBA is currently administering and adds new efforts, including:

The SBA’s current relief efforts can be found at www.sba.gov/coronavirusrelief, and more details about these program updates and new efforts the SBA will administer in the coming weeks.

This press release was produced by the Elmhurst Chamber of Commerce. The views expressed here are the author’s own.