SBA extends deferment periods for disaster loans to 2022

The U.S. Small Business Administration extended deferment periods for the COVID-19 Economic Injury Disaster Loan and other disaster loans until 2022.

The first payment due date for all SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, is extended from 12 months to 24 months from the date of the note. For all such loans made in calendar year 2021, the first payment due date is extended from 12 months to 18 months from the date of the note, according to a news release.

Borrowers in SBA disaster loans approved before 2020 in regular servicing status as of March 1, 2020, will be granted an additional 12-month deferment of principal and interest payments, on top of the automatic deferment they received through Dec. 31, 2020, which was subsequently extended through March 31, 2021.

Unless borrowers voluntarily continue payments during the deferment, they will resume their regular payment schedule with the payment immediately preceding March 31, 2022. Interest will continue to accrue during this period.