SBA Extends Deferment Period for all COVID-19 EIDL and Other Disaster Loans until 2022

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

• All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 24-months from the date of the note.
• All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.

Existing SBA disaster loans approved prior to 2020 in regular servicing status as of March 1, 2020, received an automatic deferment of principal and interest payments through December 31, 2020. This initial deferment period was subsequently extended through March 31, 2021. An additional 12-month deferment of principal and interest payments will be automatically granted to these borrowers. Borrowers will resume their regular payment schedule with the payment immediately preceding March 31, 2022, unless the borrower voluntarily continues to make payments while on deferment. It is important to note that the interest will continue to accrue on the outstanding balance of the loan throughout the duration of the deferment.

EIDL grants/loan application process appears to be delayed until mid-February.

EIDL Grants

• The SBA is not accepting new applicants at this time.
• If you already received an EIDL grant that is less than the $10K maximum, SBA will reach out to you via email.  It appears as though you may receive the difference between the original amount you received and the full $10K amount.
• If you submitted a grant application and did not receive anything because money ran out, your application will be considered next “in line”.  The SBA will reach out to you via email.
  

EIDL Loans

• Can you apply for a second loan due to COVID?
  
• It is hard to say with 100% certainty, but based on the article below, it appears as though the answer is “no”.
  
• https://www.cnbc.com/2021/01/15/small-businesses-can-get-a-second-ppp-but-not-a-second-eidl-loan.html
• If you suffered from another disaster, you could apply for a loan associated with that other disaster.
• If your first EIDL loan was not for the maximum amount you can ask to have the amount increased.
  

Economic Injury Disaster Loan (EIDL)

Tool to see if you apply is available here: https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx

Applicants may qualify if they:

• Are located in a low-income community. The definition of a “low-income community” is defined in section 45D(e) of the Internal Revenue Code. Note that the applicant must be located in a low-income community in order to qualify. Additional details on how SBA will identify low-income communities will be available soon on our Coronavirus Relief Options page; AND
• Can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction.

Areas in Morristown that are considered low income communities. The one area of Speedwell Ave & Spring St, from approximately Bishop Nazery Way to Lake Pocahontas. The east side of Speedwell Ave, Route 202, going along Martin Luther King Avenue area. One side of Speedwell Avenue is designated as low income and the other side is not. The CVS /Laundry Land area of Speedwell Avenue is designated as a low income corridor.

The portal for EIDL may be opening again in mid-February.

Check SBA website for updates: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/covid-19-economic-injury-disaster-loans