March 16, 2021—The Small Business Administration (SBA) has extended deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022, the organization announced in a press release.
All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have a first payment due date extended from 12 months to 24 months from the date of the note. All SBA disaster loans made in calendar year 2021 will have a first payment due date extended from 12 months to 18 months from the date of the note.
“Small businesses, private nonprofits and agricultural enterprises, including those self-employed individuals, contractors and gig workers, continue to navigate a very difficult economic environment due to the continued impacts of the Coronavirus COVID-19 pandemic, as well as historic severe winter storms in 2020,” SBA Administrator Tami Perrillo said in a statement.
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.