SBA extends deferment period for COVID EIDL program

The U.S. Small Business Administration announced this week that it will extend the deferment period for principal and interest payments on the existing COVID Economic Injury Disaster Loan (EIDL) program for an additional six months.

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. “This extended principal and interest deferment will provide financial relief to millions of small business owners – particularly those hardest hit by the pandemic and related marketplace challenges – so they can continue to pivot, adapt and grow," said SBA Administrator Isabella Casillas Guzman.

The SBA has more information about the deferment period on its website.