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Update on EIDL Loan Repayments from RAMW Industry Partner CPA Eats

March 17, 2022

This week the SBA announced that the agency would provide additional deferment of principal and interest payments for existing EIDL program loans, adding a six month extension to the program’s existing 24 months deferment, for a total deferment of 30 months from the date of the loan. Harmony Group has been very vocal about the utility of EIDL, and nearly four million businesses have taken these vital loans, so this is relevant to many of our clients. If you have a current EIDL outstanding, you are likely to receive an email from the SBA about it over the next several days.

Note that while this is good news if you were anticipating imminent payments, it does not change the math for your business - monthly payments are still the same amounts set out in the parameters of the original loans, creating a risk of balloon payments at the end of the program. Harmony Group will continue to provide you with the guidance you need as your payments begin, and will keep you up to date on any further changes or extensions to the program.

Some key points, per the SBA

  • This deferment extension is effective for all COVID-EIDL Loans approved in calendar years 2020, 2021, and 2022. Loans now have a total deferment of 30 months from the date of the Note. Interest will continue to accrue on the loans during the deferment. 

  • Borrowers may make partial or full payments during the deferment period but are not required to. The SBA recommends using

  • The SBA will not send monthly SBA Form 1201 payment notices; however, the SBA will send regular payment reminders via email. 

  • Existing COVID EIDL Borrowers can find account balances and payment due dates in the SBA Capital Access Financial System (CAFS) and learn how to set up an account in the CAFS system by logging in at Capital Access Financial System (  

  • Deferments may result in balloon payments. The deferment will not stop any established Preauthorized Debit (PAD) or recurring payments on the loan. COVID-EIDL Borrowers with an SBA established PAD must contact their SBA servicing center to stop recurring payments during the extended deferment period. COVID-EIDL Borrowers who have established a PAD through Pay.Gov or any other bill pay service are responsible for terminating recurring payments during the extended deferment period. 

  • After the deferment period ends, COVID-EIDL Borrowers will be required to make regular principal and interest payments beginning 30 months from the date of the Note.

You can read more at the SBA’s full press release. As always, stay tuned to the CPA Eats blog and to our newsletter for ongoing information, tax tips, and up to the minute news analysis.