Vermont Business Magazine The US Small Business Administration announced extended deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022. This includes Vermont.
• All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 24-months from the date of the note.
• All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.
Existing SBA disaster loans approved prior to 2020 in regular servicing status as of March 1, 2020, received an automatic deferment of principal and interest payments through December 31, 2020. This initial deferment period was subsequently extended through March 31, 2021. An additional 12-month deferment of principal and interest payments will be automatically granted to these borrowers.
Borrowers will resume their regular payment schedule with the payment immediately preceding March 31, 2022, unless the borrower voluntarily continues to make payments while on deferment. It is important to note that the interest will continue to accrue on the outstanding balance of the loan throughout the duration of the deferment.
“Small Businesses, private nonprofits and agricultural enterprises, including those self-employed individuals, contractors and gig workers, continue to navigate a very difficult economic environment due to the continued impacts of the Coronavirus COVID-19 pandemic, as well as historic Severe Winter Storms in 2020,” SBA Administrator Tami Perrillo said. “The COVID-19 EIDL program has assisted over 3.7 million of small businesses, including non-profit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors, through this challenging time.”
SBA continues to strive to make available all previously approved Coronavirus Pandemic stimulus funding and administer the new targeted programs related to provisions in the 2020 Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Economic Aid Act) as quickly as possible.
“The American people and the nation’s Small Business owners need our tireless effort and dedication to get this essential funding to those in great need, and SBA will not rest until we implement President Biden’s “American Rescue Plan” and its’ additional targeted programs and funds allocated for America’s small business and nonprofit communities,” said SBA Senior Advisor Michael Roth .
COVID-19 EIDL loans are offered at very affordable terms, with a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity. Interest continues to accrue during the deferment period and borrowers may make full or partial payments if they choose.
In mid-February 2021, SBA reached a milestone in the success of the COVID-19 EIDL program, by approving over $200 billion in emergency funding in low-interest loans, providing working capital funds to small businesses, non-profits and agricultural businesses to survive the severe impacts of this catastrophic and historic period within the entire United States of America and its territories. SBA continues to approve over $500 million each week for the COVID-19 EIDL program.
Questions about SBA COVID-19 EIDL and disaster loan payments can be answered by email at DisasterCustomerService@sba.
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PPP Workshop For VT Cosmetologists, Tattoo Artists & Body Piercers
Are you a sole proprietor, independent contractor, or self-employed? Have you applied for an SBA Paycheck Protection Program (PPP) forgivable loan? Learn more about the SBA’s new formula for Schedule C filers to receive more financial support. But the March 31st approval deadline is quickly approaching!
Vermont personal care providers - please join the SBA Vermont District Office on Friday, March 19th at 9:00am for a FREE webinar on how the PPP program works and how you may qualify for more funds under new formula changes for IRS Form 1040, Schedule C filers. Need application assistance? Learn about available technical assistance supports from Vermont’s SBA Resource Partners.
To register, click here.
PPP Forgiveness Webinars Tuesdays
The SBA Vermont District Office hosts free webinars from 11:30 a.m. to 1 p.m. Tuesdays about Paycheck Protection Program forgiveness. Topics include criteria, the process, changes and more.
To access the webinar, click here.
To access the webinar by phone, call 202-765-1264 and enter code 986 011 495#.
For more information, email [email protected].
PPP First & Second Draw Webinar Wednesdays
The SBA Vermont District Office hosts free webinars from 9 a.m. to 10:30 a.m. Wednesdays about the Paycheck Protection Program First Draw and Second Draw options. What is a PPP loan, terms, eligibility, and the application process. What is the difference between them? What has changed with the Economic Aid Act? Details on both programs will be presented.
To access the webinar, click here.
To access the webinar by phone, call 202-765-1264 and enter code 142 718 62#.
For more information, email [email protected].