ALERT: U.S. Small Business Loan Repayment Deferment

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

This may impact your U.S.-based diving business if you took out an SBA Disaster Loan during the calendar year 2020 or in 2021. The SBA announced the following deferred deadlines:

• 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.

According to the SBA notification, 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. 

For all SBA loans, 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.

For more information, see the announcement from the SBA here.