Payment due dates for SBA disaster loans extended

Business

FILE – In this June 15, 2018, file photo, cash is fanned out from a wallet in North Andover, Mass. (AP Photo/Elise Amendola, File)

EL PASO, Texas (KTSM) — The payment due date from all U.S. Small Business economic disaster loans made in 2020 and 2021 have been extended.

The SBA announced on Friday that the deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, have been extended until 2022.

For loans made in 2020, a first payment due date extended from 12-months to 24-months from the date of the note. For loans made in calendar year 2021, also including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.

For SBA disaster loans approved before 2020 in regular servicing status as of March 1, 2020, received an automatic deferment of principal and interest payments through Dec. 31, 2020. This initial deferment period was subsequently extended through March 31, 2021.

An additional 12-month deferment of principal and interest payments will be automatically granted to these borrowers. Borrowers will resume their regular payment schedule with the payment immediately preceding March 31, 2022, unless the borrower voluntarily continues to make payments while on deferment. It is important to note that the interest will continue to accrue on the outstanding balance of the loan throughout the duration of the deferment.

In mid-February 2021, SBA had approved more than $200 billion in emergency funding in low-interest loans to small businesses, nonprofits and agricultural businesses. SBA continues to approve over $500 million each week for the COVID-19 EIDL program.

For more information on SBA COVID-19 EIDL and disaster loan payments, email at DisasterCustomerService@sba.gov or call SBA’s Customer Service Center at
1-800-659-2955 (TTY: 1-800-877-8339).

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