Law & Order

U.S. Small Business Administration Extends COVID-19 Disaster Loan Deferments Until 2022

By SEMA Washington, D.C., Staff

The U.S. Small Business Administration (SBA) has extended deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022.

  • For all SBA disaster loans made in 2020, the first payment due date is 24 months, extended from 12 months, from the date of the note.
  • For all SBA disaster loans made in 2021, the first payment due date is 18 months, extended from 12 months, from the date of the note.

The SBA also granted an additional 12-month deferment of principal and interest payments for existing disaster loans approved prior to 2020 that were in regular servicing status as of March 1, 2020. This is the third deferral extension for those loans. The first was through Dec. 31, 2020, and second extension through March 31, 2021.

The SBA has approved more than $200 billion in COVID-19 EIDL loans to more than 3.7 million small businesses and non-profit organizations. The loans have a 30-year maturity with interest rates of 3.75% for small businesses, including sole proprietors and independent contractors, and 2.75% for non-profits.

For more information, contact Stuart Gosswein at stuartg@sema.org.