Important Information on EIDL Loans

30 Mar 2022 · 3 min

Watch on YouTube

3:11

Donna Bordeaux explains the SBA extended EIDL payment deferral to 30 months, giving borrowers six more months before payments start. Interest keeps accruing at 3.75% for most borrowers, 2.75% for nonprofits. Set up a pay.gov account now to track your balance and interest.

Questions this video answers

30 months before payments must begin.

3.75% for typical borrowers; 2.75% for nonprofits.

On pay.gov (set up an account and log in).

Borrowers who received loans in April/May 2020 would have had payments due ~April/May 2022, but with the additional six months deferment their payments move into October/November 2022.

Chapters

Those of you with EIDL loans, that is the economic impact disaster loan. If you have those loans, you were expecting first off to make payment within 12 months of when you took those loans out. The SBA extended that last year and gave you 24 months. Well, this week we also received another extension. So it'll be 30 months before you have to begin making payments on your loan. So this notice came out via email. If you didn't receive one, it's not a big deal. The SBA is not really great with their email team, but this would be the email announcing that you now have another six month deferment. So in looking at that, what does that mean for you and me? Well, we're going to go from 24 months to 30 months. Interest is still accruing. Okay. You are at 3.75% or 2.75% for nonprofits. So interest is still accruing and adding to your loan. Many people are asking, well, how do I make a payment if I want to? How will I know when I'm supposed to start making payments? How do I know what my balance is and what the interest is that's been accruing? Well, there are pieces of information in this email to allow you to go to pay.gov you can log in there and set up an account and that will allow you to see your loan just like an online banking presentation. I do recommend setting this up. You do not need to make payments yet, but you want to make sure you have that login for future use. And that'll be where you also go in to set up your recurring payments later on. You can check that out and let us know. But the good news is you don't have to come up the cash just yet. For most people, if they got those loans in April or May of 2020, that now means that you have two years, which would be 2022 plus six more months. So those would have been coming due April or May of this year, but now you get to add six months to that. So that would be October or November of 2020, depending on when your loan was issued. So take notice when that date is. Get this account set up and mark it on your calendar to check back later to set up your payments. All right, have a great day. I'm Donna Bordeaux from campgroundaccounting.com Please follow us on Facebook and Instagram. Make sure you check out our blog and our website from the link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. To contact me. Email me at donnaampgroundaccounting.com ra.