In a March 15, 2022 news release, the Small Business Administration (SBA) announced an additional deferral period for existing Economic Injury Disaster Loan (EIDL) repayments. The new total deferment period is now 30 months with this new extension for principal and interest payments on existing approved EIDL.
Important Details
- The extension is effective for all COVID-EIDL approved in calendar years, 2020 through 2022
- From the date of the note, loans have a total deferment of 30 months
- Interest will continue to accrue on the notes
- Payments are not required, but borrowers may choose to make full or partial payments
- The SBA will send regular reminders to borrowers via email, but will not send monthly payment notices
- Borrowers will be required to make regular principal and interest payments beginning 30 months from the date of the note
- Deferments may result in balloon payments
- Borrowers must contact their SBA servicing center to stop the recurring payments during the deferment period; any prepaid authorized debits or recurring payments currently setup will not stop automatically
Those borrowers with questions may contact the SBA’s COVID EIDL Customer Service Center at 833-853-5638. They may also email the SBA at DisasterCustomerService@sba.gov. Other resources can be found on the following webpages: http://www.sba.gov/local-assistance and http://www.sba.gov/relief
Written by Erin Kidd, EA, AFC®, MBA
Erin Kidd, MBA, EA, AFC
Erin Kidd is the Special Projects Manager at Thompson Greenspon and has nearly a decade of tax experience specializing in individual taxation. Throughout her career, she has focused on simplifying complex tax issues and educating clients to maximize their tax benefits and plan for future events. Erin holds a Bachelor’s and Master’s Degree in Business Administration from Morehead State University, is an Enrolled Agent, a federally licensed tax preparer who has unlimited rights to practice before the IRS, and an Accredited Financial Counselor ®. She has been recognized by the Garrison Commands of West Point, NY and Fort Leavenworth, KS for her contributions to the military community for her work with the installations’ Volunteer Income Tax Assistance Centers.