Author: Tammy Maguire, Director of Financial Services, CironeFriedberg, LLP
Extended Deferral Period
The first change is an extension of the deferment period on all EIDL including COVID-19 loans from an original 12-month deferral period.
- Loans issued prior to 2020 have an additional 12 month’s deferment of principal and interest; payments will resume with the first payment immediately preceding March 31, 2022.
- Loans issued in 2020 will have the first payment due 24 months from date of the note.
- Loans issued in 2021 will have the first payment due 18 months from date of the note.
Interest will continue to accrue during the deferment period. Borrowers will have the option to continue making payments.
Increased Loan Limits
Effective April 6, 2021, the SBA EIDL program will increase the amount a business can borrow from $150,000 (6 months of injury) to $500,000 (24 months of injury).
- If a business has a loan in process when the increase becomes effective, they will automatically be considered for the increased loan amount.
The SBA will reach out via email to businesses who already have an EIDL with details on how to request an increase.
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