Disclaimer: This information was correct at the time of publication; however, new guidance from government agencies may be issued at any time, causing some or all of this information to change. Please visit our COVID-19 Business Strategy Hub for the latest news and ensure you are subscribed here to receive email alerts as they are released. We are working diligently to provide the most current information as it becomes available under our COVID-19 Actionable Insights For Businesses Series.

On March 12, 2021, the U.S. Small Business Administration (SBA) issued a news release extending deferment periods on all of its disaster loans, including COVID-19 Economic Injury Disaster Loans (EIDL). Small businesses that received an EIDL do not have to start making payments on the loan until 2022. This deferral impacts more than 3.7 million small businesses and non-profits who have collectively received over $200 billion in COVID-19 EIDL loans through the SBA.

The specific details of the deferral tie to the calendar year the business received the disaster loan.

  • For a business that received a disaster loan in 2020, the first payment is due 24 months (extended from 12 months) from the date on the note.
  • For a business that received a disaster loan in 2021, the first payment due date is 18 months (extended from 12 months) from the date of the note.

The SBA also issued a third deferral extension, this time for 12 months, of principal and interest payments for existing disaster loans approved prior to 2020 that were in regular servicing status as of March 1, 2020. The latest deferral allows companies to postpone their payments through March 31, 2022, and payment schedules will resume immediately following this date.

One key point to keep in mind is that EIDL borrowers can voluntarily make payments on their loan balance during the deferment period. Since interest will continue to accrue on the outstanding loan balance during the deferral period, our advice is to make payments if your business can do so while maintaining normal operations.

If you have additional questions about your EIDL loan, our team is here to help. Contact us for more information.

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Bert Mills, CPA, is the Managing Partner at Moore Colson. In his role, Bert sets the vision and mission of the Firm and works closely with the Firm’s leadership to drive and implement strategies. 


Andy Starnes, CPA, is a Partner and Tax Services Practice Leader Moore Colson. Andy’s specialties include corporate tax compliance and planning, business consulting and multi-generational planning with a focus on the construction, professional services and staffing industries.

Moore Colson CPAs and Advisors Chris Arnone Audit Practice Leader

Chris Arnone, CPA, is a Partner and Business Assurance Practice Leader at Moore Colson. Chris has over 20 years of experience providing audit, accounting and consulting services for companies in the transportation, manufacturing, distribution, staffing, private equity and venture capital industries.



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