Small Business COVID Loan Payment Period Is Extended

Small Business COVID Loan Payment Period Is Extended

The U.S. Small Business Administration on Tuesday extended by six months the repayment schedule for COVID Economic Injury Disaster Loans that went to thousands of businesses nationwide, including New York.

The extended deferment period will provide additional flexibility to small business owners impacted by the pandemic, especially those in hard-hit sectors dealing with  recent variants of the pandemic as well as supply chain and inflation challenges.

Borrowers now have a total of 30 months deferment on their loans.

“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,” SBA Administrator Isabella Casillas Guzman said in making the announcement.

“This extended principal and interest deferment will provide financial relief to millions of small business owners.”
The deferment applies to loans approved in calendar years 2020, 2021, and 2022.

Interest will continue to accrue on the loans during the deferment. Borrowers can continue to make payments during the deferment period but they aren’t required to do so.

U.S. Sen. Charles Schumer, D-N.Y., said that 8,755 small businesses or nonprofits in the Capital Region were approved for such loans totaling $792.2 million.

“The EIDL program has been a lifeline for hundreds of thousands of New York’s small businesses and nonprofits, across every county of the state, and now over 330,000 small businesses and nonprofits across the Empire State will be given much-needed, additional relief to help them recover as we exit the omicron wave,” Schumer said.

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