The U.S. Small Business Administration has announced it will extend the deferment period of principal and interest payments for businesses that received a COVID Economic Injury Disaster Loan. The deferment gives COVID EIDL borrowers an extra six months of payment relief, thereby extending the total deferment period to a total of 30 months from the inception of all approved COVID EIDL loans.

The Economic Injury Disaster Loan (EIDL), a staple of disaster assistance resources offered by the SBA, was expanded in 2020 to create a special EIDL loan program specifically for businesses that were negatively impacted by the COVID-19 pandemic. The COVID EIDL program has expired and new loans are no longer available; the changes announced in March 2022, apply to loans that were previously approved and funded. The (non-COVID) EIDL continues to accept applications from businesses impacted by other disasters — such as those caused by fires and flooding — if the business is located in a designated disaster area.

According to the SBA:

• 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 into the Capital Access Financial System.
• Deferments may result in balloon payments. The deferment will not stop any established Preauthorized Debit (PAD) or recurring payments on the loan. COVID-EIDL Borrowers with an SBA established PAD must contact their SBA servicing center to stop recurring payments during the extended deferment period. COVID-EIDL Borrowers who have established a PAD through Pay.Gov or any other bill pay service are responsible for terminating recurring payments during the extended deferment period. 
• 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.

Find more information here, or call the SBA COVID-EIDL Customer Service Center at 833-853-5638