22 Sep EIDL Borrowers: Is it Time to Begin Paying Back Your Loan?
If you took advantage of the Economic Injury Disaster Loan (EIDL) Program, it may be time to start paying back your loan. Your monthly SBA COVID-19 Economic Injury Disaster Loan payments begin 30 months from the date of the original note.
Even if it hasn’t been 30 months and you are not yet obligated to begin paying back your EIDL loan, you will still want to log in to check on your loans. If you haven’t logged in for more than a month, your account will be locked, and you will have to call to reset it. This can be frustrating! We recommend sending a reminder to yourself to log in at least once per month to avoid this problem. And if you have specific questions, we’re here to help.
In 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act expanded the Small Business Administration’s EIDL program, which was originally created to assist businesses, renters, and homeowners located in regions affected by declared disasters. Payments on Coronavirus EIDL loans were initially deferred for one year. Later, due to the continued adverse effects of the COVID-19 emergency, the SBA provided additional deferments of principal and interest payments to existing COVID EIDL borrowers to a total deferment of 30 months from the date of the original note. Interest is continuing to accrue on the loans during the deferment.
By April 2020, the SBA approved 38,984 loans for a total amount of $7,967,174,888.
If your business was one of the first to get the COVID-19 EIDL, your deferment period is ending soon.
How do I monitor loan status and make payments?
Access instructions on how to make a payment on your COVID EIDL.
You are responsible for your COVID-19 EIDL monthly payment obligation beginning 30 months from the disbursement date shown on the top of the global front page of your Original Note.
During this deferment:
- You may make voluntary payments without prepayment penalties
- Interest will continue to accrue on your loan during the deferment
- If you do not make voluntary payments during the deferment, a final balloon payment will be due on your loan at maturity
Have questions? Reach out! We’d be happy to help.