The Small Business Administration (SBA) announced that the due date for repayment of emergency loans made in 2020 is now extended to 24 months from when it was issued, instead of 12 months. Loans from 2021, including those taken out under the COVID-19 program, are also getting an extra 18-month extension.
The SBA has announced that borrowers have until 2022 to meet their obligations under the COVID-19 Economic Injury Disaster Loan program (EIDL). Borrowers will resume regular payments with a payment immediately preceding March 31, unless they continue making them while on deferment – in which case payments would be made every other month. It is important to note that interest will continue to accumulate on the outstanding balance of your loan throughout deferment.
The COVID-19 EIDL program is a one-stop shop for small businesses and nonprofit organizations experiencing temporary revenue loss due to the pandemic. The CARES Act established this relief initiative to provide economic security during these difficult times, making sure no citizen falls behind because they can’t afford basic needs while their business isn’t generating enough income.
Since COVID-19, small businesses have been able to continue operating without interruption, thanks in large part due to the EIDL program. The three million-plus participating companies include nonprofit organizations and independent contractors from a wide range of industries.
The SBA has announced that they will be extending the date by which disaster loans are due. This is done to give those who have already received their loan enough time to pay and avoid forcing them into any early repayments because of emergencies.
The COVID-19 EIDL loans offer affordable interest rates. The 3 percent for small businesses and 2% for nonprofit organizations, along with a 30-year maturity. The SBA makes every effort to ensure that previously approved Coronavirus Pandemic stimulus funding. New targeted programs relating to the 2020 Economic Aid Act will be administered quickly, if not sooner than expected.
The SBA has approved more than $200 billion in emergency funding for small businesses, nonprofits, and agricultural organizations to survive the severe impacts of this catastrophic period. They also continuously approve $500 million a week for the EIDL program.
You can email the Small Business Administration at any time with questions about COVID-19 and disaster loans. You can reach them by email at DisasterCustomerService@sba.gov or call their Customer Service Center at 1-800-659-2955.