SBA Extends Deferment for Small Business EIDL Covid Loans

Starting immediately the Small Business Administration (SBA) is extending the deferment for existing COVID Economic Injury Disaster Loan (EIDL) program borrowers for a total of 30 months. This includes the principal and interest payments on all approved COVID EIDL loans from the start.

SBA Extends Deferment of EIDL Loans

The SBA has made a concerted effort to help small businesses regarding the loans they have received from the EIDL program. Especially when it comes to ensuring they apply for the forgiveness of these loans.

This time around the SBA is providing help by extending the deferment of the EIDL loans. As SBA Administrator Isabella Casillas Guzman said, “This extended principal and interest deferment will provide financial relief to millions of small business owners – particularly those hardest-hit by the pandemic and related marketplace challenges – so they can continue to pivot, adapt, and grow.”

With this deferment small business owners will have an extended period with increased flexibility to deal with the continuing challenges of the pandemic and associated problems. With 3.9 million borrowers and more than $351 billion in relief aid, the deferments will literally help millions of small business owners.

Deferment Details

The following are the details of the deferment as outlined by the SBA.

This deferment extension is effective for all COVID-EIDL Loans approved in calendar years 2020, 2021, and 2022. Loans now have a total deferment of 30 months from the date of the Note. Interest will continue to accrue on the loans during the deferment.
Borrowers may make partial or full payments during the deferment period but are not required to. The SBA recommends using
The SBA will not send monthly SBA Form 1201 payment notices; however, the SBA will send regular payment reminders via email.
Existing COVID EIDL Borrowers can find account balances and payment due dates in the SBA Capital Access Financial System (CAFS) and learn how to set up an account in the CAFS system by logging in at Capital Access Financial System (
Deferments may result in balloon payments. The deferment will not stop any established Preauthorized Debit (PAD) or recurring payments on the loan. COVID-EIDL Borrowers with an SBA established PAD must contact their SBA servicing center to stop recurring payments during the extended deferment period. COVID-EIDL Borrowers who have established a PAD through Pay.Gov or any other bill pay service are responsible for terminating recurring payments during the extended deferment period.
After the deferment period ends, COVID-EIDL Borrowers will be required to make regular principal and interest payments beginning 30 months from the date of the Note.


Taking Advantage of SBA Enhancements

The SBA continues to make enhancements to the EIDL program to help small businesses so they can better deal with financial hardships. The SBA has been increasing COVID EIDL cap, establishing a 30-day exclusivity window, expanding eligible use of funds, and simplifying the affiliation requirements.

Make sure to visit the SBA website regularly to find out the latest news. You can subscribe to SBA press releases for up-to-date information on SBA programs, services, and financial assistance.

If you have any questions about the deferment, you can call the SBA’s COVID EIDL Customer Service Center toll-free at 1-833-853-5638. If you are deaf or hard of hearing or have a speech disability you can dial 7-1-1 to access telecommunications relay services. You can also email for further assistance and for additional information on COVID EIDL.

The center is open Monday through Saturday from 8 a.m. to 8 p.m. ET with multilingual representatives. Additionally, you can visit to get in touch with the SBA’s Resource Partners.

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This article, “SBA Extends Deferment for Small Business EIDL Covid Loans” was first published on Small Business Trends