Deferment Period Extended for Businesses with COVID-19 Economic Injury Disaster Loans
The Small Business Administration (SBA) announced an additional six-month extension of the deferment period for COVID-19 Economic Injury Disaster Loans (EIDL). Businesses now have 30 months from the date of the note to begin starting repayment.
Any COVID-19 EIDL funds approved since 2020 would qualify under the new deferment period.
Businesses opting to take advantage of the deferment period should understand that interest will accrue during that time.
The goal of the extension is to help small businesses continue their recovery from the disruption created by the COVID-19 pandemic, and more recently from issues resulting from increased labor and supply costs.
The COVID-19 EIDL program distributed funds to almost four million borrowers before the SBA stopped accepting applications on Dec. 31, 2021.