On March 15, 2022, the U.S. Small Business Administration announced an additional six-month deferment of principal and interest payments for existing loans made under the COVID Economic Injury Disaster Loan program.
This deferment extension is effective for all COVID-EIDL loans approved in calendar years 2020, 2021 and 2022. Loans now have a total deferment of 30 months from the date of the note. Interest will continue to accrue on the loans during the deferment.
Borrowers may, but are not required, to make partial or full payments during the deferment period.
Existing COVID EIDL borrowers can find account balances and payment due dates in the SBA Capital Access Financial System (CAFS) and learn how to set up an account in the CAFS system by logging in at Capital Access Financial System (sba.gov).
The deferment will not stop any established Preauthorized Debit (PAD) or recurring payments on the loan. COVID-EIDL borrowers with an SBA-established PAD must contact their SBA servicing center to stop recurring payments during the extended deferment period. COVID-EIDL borrowers who have established a PAD through pay.gov or any other bill pay service are responsible for terminating recurring payments during the extended deferment period.
After the deferment period ends, COVID-EIDL borrowers will be required to make regular principal and interest payments beginning 30 months from the date of the note.
Related Read: Economic Injury Disaster Loans: Another Option on the Financial Relief Menu
If you have questions or concerns regarding this Client Alert, please contact Frank Washelesky at [email protected] or your ORBA advisor.
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