Businesses who received a COVID-19 Economic Injury Disaster Loan now have more time and flexibility to pay off their loan.
The U.S. Small Business Administration announced March 15 the agency is providing additional deferment of principal and interest payments for existing EIDL borrowers.
Businesses will have 30 months from the date the loan is approved before payments must be made.
There was a major overhaul of the COVID EIDL program in September, allowing businesses more flexibility and funding.
Recently supply chain issues and inflation challenges continue to impact small businesses who are recovering from the pandemic.
The deferment announcement will not stop any established pre-authorized debit or recurring payments on the loan.
“This extended principal and interest deferment will provide financial relief to millions of small business owners—particularly those hardest-hit…