Business owners with SBA disaster loans will have a little more time before they have to start making payments. The U.S. Small Business Administration announced it is extending deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022. (Scroll down to see the March 24 update about increased loan limits!)

All SBA disaster loans made in the calendar year 2020 will have a first payment due date extended to 24-months from the date of the note. All SBA disaster loans made in the calendar year 2021 will have a first payment due date extended to 18-months from the date of the note. Previous rules governing SBA disaster loans required that the first payment be submitted within 12-months of the loan date.

Business owners with a disaster loan approved prior to 2020 will also benefit. An additional 12-month deferment of principal and interest payments, on top of a previously announced deferment, will result in pre-2020 disaster loan payment resumption in March of 2022.

Borrowers can voluntarily make full or partial payments while on deferment. This is advisable for those who are able to pay because interest continues to accrue on the balance of the loan throughout the duration of the deferment.

Learn more about the EIDL loan offered by the SBA.

March 24, 2021 UPDATE: SBA to Increase Lending Limit for EIDL Loan: The SBA is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.   

Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time.  SBA will reach out directly via email and provide more details about how businesses can request an increase closer to the April 6 implementation date.  Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic injury up to a maximum of $500,000.  

Questions about SBA COVID-19 EIDL and disaster loan payments can be emailed to DisasterCustomerService@sba.gov or directed to SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).