SBA announces additional Economic Injury Disaster Loan deferment

Small Business Administration Administrator Isabella Casillas Guzman directed the agency to provide additional deferment of principal and interest payments for COVID-19 Economic Injury Disaster Loan program borrowers for a total of 30 months of deferment from inception on all approved loans under the program.

The deferment extension is effective for all COVID-EIDL loans approved in 2020, 2021 and 2022. Interest will continue to accrue on the loans during the deferment period. Borrowers can make partial or full payments during the deferment period but are not required to, according to the SBA.

The agency will not send monthly SBA Form 1201 payment notices, but it will send regular payment reminders via email. The deferment will not stop any established preauthorized debit or recurring payments on the loan, and borrowers with established preauthorized debit must contact their SBA servicing center to stop recurring payments during the extended deferment period.

After the deferment period ends, COVID-EIDL borrowers must make regular principal and interest payments beginning 30 months from the date of the note.