EIDL Payments Deferred 6 More Months

Today, the SBA announced a deferment extension for future payments on COVID-related economic injury disaster loans (EIDL). This deferment extension of up to 30 months is effective for all EIDLs approved in 2020, 2021, and 2022. Before this announcement, the deferment allowance was 24 months from the original loan’s closing date.
 
Restaurants should be aware that:

• EIDLs now have a total deferment of 30 months from the date of the loan issuance, but interest continues to accrue during deferment.
  • The EIDL interest rate for private businesses is 3.75% (2.75% for nonprofits) over 30 years.
• The SBA warns borrowers that deferments could result in “balloon” payments.
• Borrowers may make partial or full payments during the deferment period but are not required to. The SBA recommends using www.pay.gov.
  • The SBA will not send monthly SBA Form 1201 payment notices, but the SBA will send regular payment reminders via email.

• After the deferment period ends, EIDL Borrowers will be required to make regular principal and interest payments beginning 30 months from the date of the loan issuance.

 
Since 2020, the COVID EIDL program has provided more than $351 billion to 3.9 million borrowers. In September 2021, restaurants worked with the SBA to increase eligible EIDL amounts and allowable expenses, including debt financing.