Rochester Business Journal: SBA extends EIDL deferment period another six months
Nearly 9,500 small businesses in the Finger Lakes region will be allowed to defer repayment on COVID-19 Economic and Disaster Loans for another six months.
U.S. Senate Majority Leader Charles Schumer (D-N.Y.) said today that the Small Business Administration (SBA) now has agreed to extend deferment of principal and interest payments for a total of 30 months from loan inception.
Full or partial payments can be made during the deferment period but are not required, the SBA said. Interest will continue to accrue and the deferment could result in a balloon payment, the agency said.
Schumer had urged SBA Administrator Isabel Guzman to extend the repayment pause, citing economic uncertainty due to rising costs and supply chain complications.
Loans totaling $871,156,631 were made to 9,489 businesses in the Finger Lakes over the past two years, just part of the $34.5 billion in EIDLs issued to businesses in the state, Schumer’s office said.
“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 in a news release.
“This will allow our Main Streets to breathe a sigh of relief and ensure that they will not have to take another hit to their bottom line with new loan payments amid ongoing global supply disruptions and economic uncertainty.”
By Kevin Oklobzija
March 15, 2022