Since the inception of the Small Business Administration's Economic Injury Disaster Loan (EIDL) program, small businesses and nonprofits have received more than $390 billion in assistance.
This helped them keep their doors open and workforce employed during the pandemic. These loans covered things like health care costs, operating expenses, rent, utilities, fixed debt (e.g., mortgage), and other working capital needs.
But, since its inception, the EIDL program has caused some confusion, especially around deferring loan payments.
This article should clarify that confusion by answering the most commonly asked deferment questions. By the end, you'll know how to manage your payments and make a payment even while your loan is deferred. And we'll cover whether your loans can be forgiven.
Let's jump in.
Can an EIDL Loan Be Deferred?
Yes, you can defer EIDL loan payments for 30 months from the loan's disbursement date (i.e., when you got your first payment). You can find your disbursement data on the top of your original note's first page. You can also log in to the SBA portal at caweb.SBA.gov to see when your first payment is due.
Loans deferred in the spring of 2020 have reached the end of deferment. At this time, loans cannot be deferred any further.
As a reminder, during deferment, interest accrues daily. That makes the cost of deferment quite expensive. The terms of deferment also include paying that additional interest in one balloon payment at the end of your loan (30 years from origination for most loans).
Here's a quick snapshot of when your loan would be due based on when you got your first payment: