Colorado SBA EIDL Borrowers – Next Steps!
For more than 2 years, the COVID-19 Economic Injury Disaster Loan (EIDL) program provided funding to help small businesses recover from the economic impacts of the COVID-19 pandemic. In that time, more than 3.9 million loans totaling more than $378 billion were approved across the country. In Colorado, the Small Business Administration (SBA) approved more than 60,000 loans totaling more than $6 billion to be used as interim working capital and for other normal operating expenses.
The program effectively ended the first week of May 2022. As of May 6, 2022, SBA is no longer processing COVID-19 EIDL loan increase requests or requests for reconsideration of previously declined loan applications due to a lack of available funding.
As of May 16, 2022, the COVID-19 EIDL portal closed. Borrowers who need copies of their loan documents can still contact Customer Service at 833-853-5638. Please allow 3-5 business days to receive your materials.
What comes next for EIDL Borrowers?
The EIDL program is a loan program with a 30-year maturity term and an interest rate assigned at loan closing. These loans are not forgivable and must be repaid.
Payments were automatically deferred for 30 months from the date of the Note. SBA began approving COVID EIDL applications in Spring 2020. This means we are rapidly approaching the end of the deferment period for those early loans.
Business owners should start preparing to make payments. Here are some important items to note:
• Interest continued to accrue on the loans during the deferment.
• Partial or full payments were being accepted during the deferment but were not required.
• Deferments may result in balloon payments.
• SBA will not be sending monthly SBA Form 1201 payment notices but may send regular payment reminders.