SBA extends EIDL program payment deferment to 30 months

The U.S. Small Business Administration is extending the deferment period for payments on existing loans for an additional six months under the COVID Economic Injury Disaster Loan (EIDL) program. With the deferment, EIDL borrowers will have a total of 30 months from inception on their approved loans. 

Since its inception, the COVID EIDL program, a federal disaster relief loan, has allocated more than $351 billion in relief aid to 3.9 million borrowers, including to the smallest of small businesses from historically underserved, disadvantaged communities. 

Key information regarding deferment: 

• This deferment extension is effective for all COVID-EIDL Loans approved in calendar years 2020, 2021 and 2022. Loans now have a total deferment of 30 months from the date of the Note. Interest will continue to accrue on the loans during the deferment. 
• Borrowers may make partial or full payments during the deferment period but are not required to. The SBA recommends using www.pay.gov. 
• The SBA will not send monthly SBA Form 1201 payment notices; however, the SBA will send regular payment reminders via email. 

• Existing COVID EIDL Borrowers can find account balances and payment due dates in the SBA Capital Access Financial System (CAFS) and learn how to set up an account in the CAFS system by logging in at Capital Access Financial System (sba.gov).  

• Deferments may result in balloon payments. The deferment will not stop any established Preauthorized Debit (PAD) or recurring payments on the loan. 
• After the deferment period ends, COVID-EIDL Borrowers will be required to make regular principal and interest payments beginning 30 months from the date of the note.