The deferment period for COVID-19 Economic Injury Disaster Loans (EIDLs) has been extended one year for loans issued in 2020 – meaning your first payment due date will be extended from 12 months to 24 months from the date of the note. For loans issued in 2021, the extension is 6 months – meaning your first payment due date will be extended from 12 months to 18 months from the date of the note. This deferment will be automatically granted to borrowers.
Please remember, as we cautioned you earlier, the interest on the loan does continue to accrue during any deferment period granted, so those business owners with cash on hand may consider repayment during deferment periods. EIDL loans are offered at a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofits, with a 30-year maturity on the loan. Borrowers can make full or partial payments if they choose.
Also remember that, according to the SBA, anyone with an outstanding EIDL must provide financials to the SBA within 3 months of their fiscal year-end. This is for EIDL loans, not EIDL advances.
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