28 Mar Is it time to start repaying your EIDL?
Is it time to start repaying your EIDL? The deferment period is ending soon. Your monthly SBA COVID-19 Economic Injury Disaster Loan payment begins 30 months from the date of the original Note.
In 2020 the Coronavirus Aid, Relief, and Economic Security (CARES) Act expanded the Small Business Administration’s long-standing Economic Injury Disaster Loan Program (EIDL). The EIDL program was 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, 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 SBA approved 38,984 loans for total amount of $7,967,174,888. If you business was one of the first to get COVID-19 EIDL, your deferment period is ending soon. Your monthly SBA COVID-19 Economic Injury Disaster Loan payment begins 30 months from the date of the original Note.
How to monitor loan status and make payments
Create an account in SBA’s Capital Access Financial System (CAFS) to monitor your loan status. You must have a funded loan to access the CAFS system. Get account enrollment instructions.
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 voluntarypayments 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’re happy to help!
