New assistance program for COVID EIDL small business borrowers
The U.S. Small Business Administration (SBA) is providing additional measures to accommodate COVID Economic Injury Disaster Loan (EIDL) borrowers who are experiencing short-term financial difficulties. The program, known as the Hardship Accommodation Plan, allows eligible borrowers to make reduced loan payments for six months. However, it’s important to note that interest on these loans will continue to accrue, which may increase or create a balloon payment at the end of the loan term.
- Borrowers must pay at least 10% of their monthly loan payment amount for six months, with a $25 minimum payment.
- Borrowers can make larger loan payments during the Hardship Accommodation Plan period.
- After the six-month period ends, borrowers will be required to make regular monthly payments.
- Borrowers may be able to renew the Hardship Accommodation Plan, if necessary.
To qualify and enroll for the Hardship Accommodation Plan, borrowers must meet the following criteria.
- Borrowers can enroll in the Hardship Accommodation Plan 60 calendar days before their first payment due date.
- If you owe less than or equal to $200,000, you can enroll in the program through the MySBA Loan Portal (lending.sba.gov). Visit the Loan Summaries section, and look for the Hardship Accommodation Plan.
- If you owe more than $200,000, you will need to contact the COVID-19 EIDL Servicing Center at 833-853-5638 or [email protected] (and include “Hardship Accommodation Plan” in the subject line). You will be contacted by a loan specialist regarding requirements.
For more COVID EIDL assistance, get in touch with the SBA’s servicing center at 833-853-5638 (TTY: 711) or email [email protected].