Payment period for small business COVID loans extended


The U.S. Small Business Administration on Tuesday extended by six months the repayment schedule for COVID-related economic disaster loans that have been issued to thousands of businesses across the country, including New York.

The extended adjournment period will provide additional flexibility for small business owners impacted by the pandemic, particularly those in sectors hit hard by recent variants of the pandemic as well as supply chain and inflation challenges. .

Borrowers now have a total of 30 months of deferral on their loans.

“We must continue to do everything in our power to meet our small businesses where they are with resources to ensure they can recover and thrive,” said SBA Administrator Isabella Casillas. Guzman, during the announcement.

“This extended deferral of principal and interest will provide financial relief to millions of small business owners.”
The deferral applies to loans approved in calendar years 2020, 2021 and 2022.

Interest will continue to accrue on the loans during the deferral. Borrowers can continue to make payments during the deferment period, but they are not required to do so.

U.S. Senator Charles Schumer, DN.Y., said 8,755 small businesses or nonprofits in the Capital Region have been approved for such loans totaling $792.2 million.

“The EIDL program has been a lifeline for hundreds of thousands of small businesses and nonprofits in New York City, in every county across the state, and now more than 330,000 small businesses and organizations in nonprofits across the Empire State will receive much-needed additional support to help them recover when we leave the omicron wave,” Schumer said.


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