Isabella Casillas Guzman, head of the U.S. Small Business Administration, directed the agency to provide additional deferment of principal and interest payments for existing COVID Economic Injury Disaster Loan (EIDL) program borrowers for a total of 30 months deferment from inception on all approved COVID EIDL loans.
The extended deferment period will provide additional flexibility to small business owners impacted by the pandemic, especially those in hard-hit sectors managing disruption with recent variants and recent supply chain and inflation challenges.
Since its inception, the COVID EIDL program, a federal disaster relief loan, has allocated more than $351 billion in relief aid to 3.9 million borrowers.
“Though our small business owners continue to power a historic economic recovery under the Biden-Harris administration, we must continue to do everything in our power to meet our small businesses where they are with resources to ensure they can recover and thrive,” 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.”
Key information regarding deferment:
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