The U.S. Small Business Administration (SBA) announced it will defer the time period in which small businesses need to start repaying Economy Injury Disaster Loans (EIDL) in principle and interest.
The COVID-19 EIDL program has assisted over 3.7 million small businesses in this country, including nonprofit organizations, sole proprietors and independent contractors from a wide array of industries and business sectors.
Tune in to the Business Beat to get the full scoop!
“We applaud the hardworking and dedicated people evaluating and approving these loans on behalf of our small businesses, who again, without which may have not been able to survive.”
– Jeff Sloan
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Good morning, Paul.
Good news for those small businesses who applied for and received EIDL program loans from the federal government, otherwise known as Economic Injury Disaster Loans. Specifically, the federal government has deferred the time period in which you need to start repaying these loans in principle and interest as follows:
All SBA Disaster Loans made in the calendar year 2020, including COVID-19 EIDL loans, will have a first payment due date extended from 12 to 24 months from the date of the note. And all SBA Disaster Loans made in the calendar year 2021 will have a first payment due date extended from 12 to 18 months from the date of the note. Now, for those who received loans prior to March 1, 2020, you will also receive an automatic, additional deferment of principal interest due for an additional year.
Now, it’s important to note that on all these loans, interest will continue to accrue, even though it’s not required to be paid during these deferment periods.
The COVID-19 EIDL program, Paul, has assisted over 3.7 million small businesses in this country, including nonprofit organizations, sole proprietors and independent contractors from a wide array of industries and business sectors.
These loans have been nothing less than critical in keeping small businesses afloat during these most challenging times. And the program has been an incredible success. In February 2021, the SBA reached a milestone of approving over $200 billion in emergency funding and these low interest loans and the SBA continues to approve over $500 million in loans each week as part of the EIDL program.
We applaud the hardworking and dedicated people evaluating and approving these loans on behalf of our small businesses, who again, without which may have not been able to survive.
And for those of you thinking of applying for an EIDL loan, well, just go to sba.gov. These loans are offered at a 3.75% interest rate for small businesses and a 2.75% interest rate for nonprofit organizations. The loans have a 30-year maturity.
I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.
