Millions of business owners and nonprofits that received a COVID Economic Injury Disaster Loan (EIDL) now have more time to begin making their loan payments. Last week, the Small Business Administration (SBA) announced that these borrowers will receive an extended 30 months deferment period from the date of loan approval.
This extension applies to all COVID EIDLs approved in 2020, 2021 and 2022. Previous deferment periods for these loans were set at 18 or 24 months. This new relief was prompted by members of Congress, who requested an additional extension as businesses continue to be impacted by economic hardship and pandemic-related losses.
Interest will continue to accrue during the deferment period, at 3.75% for small businesses and 2.75% for nonprofit organizations. Borrowers may choose, but are not required, to make partial or full payments during the deferment period.