Economic Injury Disaster Loan (EIDL) borrowers will be granted 30-month total deferment under new announcement
Washington, D.C. – The Small Business Administration (SBA) today extended the deferment period for repayment of COVID-19 Economic Injury Disaster Loans (EIDL) for small businesses. The announcement comes after U.S. Senators John Hickenlooper and Michael Bennet urged the SBA to extend the repayment deadline while small businesses continue to recover from the pandemic.
Small business owners can click HERE for more information on the EIDL program and instructions on how to apply.
“Small businesses are still recovering from the pandemic,” said Hickenlooper. “EIDL loans are meant to save small businesses, and we thank the SBA for extending the existing deadline.”
“As small businesses in Colorado and across the country continue to recover from the COVID-19 pandemic, I’m glad the Small Business Administration responded to our calls to extend the deadline for Economic Injury Disaster Loan repayment,” said Bennet. “This will provide the 60,000 Colorado small businesses that have benefited from this program since the start of the pandemic with a little more certainty and breathing room as we continue to return to normal.”
Further information on today’s SBA announcement:
- 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 loan. Interest will continue to accrue on the loans during the deferment.
- Borrowers may make partial or full payments during the deferment period but are not required to do so.
- 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 loan.
Additionally, last September the SBA raised the maximum loan amount small businesses can access from COVID-19 Economic Injury Disaster Loans to $2 million. The move came after urging from Hickenlooper and represented a four-fold increase in the amount a business can access.
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