Here’s how to defer your EIDL 

Are you one of the millions of businesses that took out a Covid-19 Economic Injury Disaster Loan (EIDL)? If so, did know you could be saving up to 90% on payments for up to 6 months?

Recently, the SBA has made the shift to start referring outstanding loans to collections (the US Treasury Department). However, the SBA has provided small businesse with the ability to enroll in Deferment, allowing the Member to pay a fraction of the monthly payment for up to 6 months.  

Make sure you qualify 

This 6-month deferment extension is effective for all COVID EIDLs approved in calendar years 2020, 2021 and 2022. COVID EIDLs have a total deferment of 30 months from the date of the Note.

Access your SBA account 

Account balances and payment due dates are accessible in the SBA Capital Access Financial System (CAFS). Borrowers may learn how to set up an account in the CAFS system by logging in at the hyperlink.

Keep Track

COVID-EIDL Borrowers should be advised that

• Interest will continue to accrue on the loans during the deferment. Make sure you are planning for this.

• Partial or full payments may be made (recommended to use www.pay.gov) during the deferment but are not required.

• SBA will not be sending monthly SBA Form 1201 payment notices (although SBA will send regular payment reminders).

• Account balances and payment due dates are accessible in the SBA Capital Access Financial System (CAFS). Borrowers may learn how to set up an account in the CAFS system by logging in at https://caweb.sba.gov/cls/dsp_login.cfm.

• Deferments may result in balloon payments.

• The deferment will not stop any established Preauthorized Debit (PAD) or recurring payments on the loan. COVID EIDL Borrowers with an SBA established PAD must contact their SBA servicing center to stop recurring payments during the extended deferment period.

• Borrowers that have established a PAD through Pay.Gov or any other bill pay service are responsible for terminating recurring payments during the extended deferment period.

• After the deferment period ends, COVID EIDL Borrowers will be required to make regular principal and interest payments beginning 30 months from the date of the Note.

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