SBA extends disaster loan deferment period to 2022
Photo | Grant Welker
The Stevens Block on Southbridge Street in downtown Worcester
The U.S. Small Business Administration announced on Friday it will extend deferment periods for all disaster loans, including those part of the COVID-19 Economic Injury Disaster Loan program, until 2022.
Under the changes, first payment deferments on all SBA disaster loans issued in 2020 will be extended from 12 months to 24 months from the date of the note. In turn, all SBA disaster loans issued in 2021 will not be due to begin payments until 18 months from the date of the note.
Interest will continue to accrue during the deferment. Borrowers may voluntarily pay back their loans earlier, if they want to.
Last month, the COVID-19 EIDL program reached a milestone, with the SBA reporting it issued more than $200 billion in emergency funding in low-interest loans to small businesses, nonprofits and agricultural businesses, intended to help them survive financial challenges brought on by the coronavirus pandemic.
The SBA approves more than $500 million each week as part of the program, according to the SBA.
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