SBA Extends Adjournment Period for All EIDL COVID-19 and Other Disaster Loans to 2022 – Oswego County Today
WASHINGTON, DC – The US Small Business Administration has announced extended deferment periods for all disaster loans, including the COVID-19 Economic Disaster Lending Program (EIDL), until 2022.
- All SBA disaster loans made during calendar year 2020, including COVID-19 EIDL, will have an extended first payment due date from 12 months to 24 months from the date of payment. note.
- All SBA disaster loans made during the 2021 calendar year, including COVID-19 EIDL, will have an extended first payment due date from 12 months to 18 months from the date of payment. note.
Existing SBA disaster loans approved before 2020 and with regular service status as of March 1, 2020, received an automatic deferral of principal and interest payments until December 31, 2020. This initial deferral period then continued. been extended until March 31, 2021. 12 others – a deferral of one month’s payment of principal and interest will be automatically granted to these borrowers. Borrowers will resume their regular payment schedule with payment immediately preceding March 31, 2022, unless the borrower voluntarily continues to make payments during the deferral. It is important to note that interest will continue to accrue on the outstanding loan balance for the duration of the deferral.
âSmall businesses, private non-profit organizations and agricultural businesses, including self-employed, contractors and concert workers, continue to navigate a very difficult economic environment due to the continuing impacts of the coronavirus pandemic COVID-19, as well as historic severe winter storms in 2020, âsaid Acting SBA Administrator Tami Perrillo.
âThe EIDL COVID-19 program has helped more than 3.7 million small businesses, including nonprofits, sole proprietorships and independent contractors, across a wide range of industries and lines of business , through this difficult period, âcontinued Perrillo.
The SBA continues to work to make all previously approved stimulus funds available in the event of the coronavirus pandemic and to administer the new targeted programs related to the provisions of the Act 2020 on economic assistance to small businesses, organizations. nonprofit and hard-hit sites (the Economic Aid Act) as quickly as possible. .
“The American people and small business owners across the country need our tireless efforts and dedication to deliver this vital financing to those who need it most, and the SBA will not rest until we have implemented President Biden’s âUS bailoutâ and its additional targeted programs and funds. for US small businesses and nonprofit communities, âsaid Michael Roth, senior advisor for the SBA.
COVID-19 EIDL loans are offered on very affordable terms, with an interest rate of 3.75% for small businesses and 2.75% for nonprofits, with a maturity of 30 years. Interest continues to accrue during the deferral period and borrowers can make full or partial payments if they wish.
In mid-February 2021, the SBA took a significant step forward in the success of the COVID-19 EIDL program, approving more than $ 200 billion in emergency financing in the form of low-interest loans, providing working capital to small businesses, nonprofits, and farm businesses to survive the severe impacts of this catastrophic and historic time on the entire United States of America and its territories. The SBA continues to approve more than $ 500 million each week for the COVID-19 EIDL program.
Questions about SBA COVID-19 EIDL and Disaster Loan Payments can be answered by email at [emailÂ protected] or by calling the SBA Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339).