Donna Genie explains the SBA's new Hardship Accommodation Plan for EIDL loans. If you can't make full payments, you can enroll through the SBA portal to pay just 10% for six months. Most loans under $200,000 qualify, and the deferred amount becomes a balloon payment at maturity.
Foreign we have some more big news on the Eidl and what happens if you can't pay? If you're still in business and you have a hardship, your business just hasn't recovered yet and you don't have the money to pay your full Eidl loan payments, there's a new option available. It's called the Hardship Accommodation Plan. When you log into your portal through the sba, you'll be able to see an option to take advantage of this. We'll talk about that a little bit more in a minute. This new plan will allow you to make 10% of your payment on your Eidl loan for the next six months. So it will reduce your payment. So if your payment was going to be $2,000, you could make a $200 payment if you log in and take advantage of this. From what we're seeing, as long as your loan is under $200,000, you should qualify for this, which is the majority of Eidl loans. You'll need to log in to your portal where you would make the payment. And instead of selecting to make the payment, if you click on the loan number to get information about your loan, you will see a red button on the right hand side that says Hardship Accommodation Plan and you can click that button to successfully set this up. Now, the SBA has gone to great lengths to put on their website that the 30 month EIDFL deferment period will not be extended, that the loan is not forgivable, so they're sticking to it. But this Hardship Accommodation program will last for six months. It says you're going to be able to reapply or renew that if necessary after that six months ends. So what happens to the amount due is that it's going to add to a balloon. So your extended date when the loan must be paid in full is not going to change. You will just have a balloon payment at the end of the loan for any additional interest that accrues during that deferment time. The regular payment would resume after the six months unless you are able to renew it. So again, the requirements here are that your if your loan is under $200,000, you should have that button available that you can log in and select with. If your loan is over the $200,000, you must contact the service center for the SBA to ask about specialized requirements to get a hardship accommodation. They list a phone number of 833-853-5638. Again, that's 833-85356 or you can email disaster customerservicesba.gov and include hardship accommodation plan in the subject line. They say they will get back to you. One other thing, I will include the link to the page with more information here but for the first time I am seeing a link on this page for contacting them if you need to have a lien subordination or if you want to sell and you want a collateral lease. If you want to sell some equipment through your business or you need to do a new lease or you have a change in ownership in the business. So check out that link for the details there. It gives you a phone number to contact or emails for each service centers for that purpose. So keeping you informed on Eidl Keep watching and subscribe to our channel for the latest and greatest updates as they come.
Please follow us on Facebook and Instagram. Please make sure to check out our blog and our website linked below. Subscribe to our YouTube channel and hit the bell to be notified when we post.
You can email me@donnacampgroundaccounting.com SA.
