Category: Business

SBA extends deferment period for disaster loans, including some COVID-19 loans

The U.S. Small Business Administration has announced extended deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022.

• 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 Dec. 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,” Perrillo said.

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,” SBA Senior Adviser Michael Roth said.

COVID-19 EIDL loans are offered at 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.

For more information, email [email protected] or call SBA’s Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339).

Deadline extended for small business loans

One week after Rep. Sharice Davids introduced bipartisan legislation to extend the deadline for small businesses to repay COVID-19 disaster loans, the U.S. Small Business Administration announced they will extend the deadline until 2022.

Rep. Davids, D-3rd Dist., applauded the decision by the SBA to delay loan repayments, which will provide additional relief for businesses as the COVID-19 pandemic remains ongoing.

“For the past year, the coronavirus pandemic has devastated our communities and put the futures of our small businesses at risk. Even with the vaccine rollout speeding up, the pandemic is far from over, and our small businesses need all the help they can get to make it through. I’m glad the SBA listened to our calls to extend the loan repayment deadline for our small business owners, giving them some much needed breathing room,” Rep. Davids said.

Rep. Davids’ bill, The Economic Injury Disaster Loan Relief Act, was introduced with Congresswoman María Elvira Salazar, R-Florida.

Opponents, proponents discuss public funding of private schools

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Opinion column

by Murrel Bland

It was an interesting discussion about public money being used by private schools when the Legislative Committee met Friday morning, March 12 via Zoom. The committee is a function of the Kansas City, Kansas, Area Chamber of Commerce.

Dr. Alicia Miguel, the Kansas City, Kansas, School District superintendent, expressed her opposition to two bills in the Kansas Legislature – Senate Bill 61 and House Bill 2119.

The House bill would allow educational savings accounts for private schools. Dr. Miguel said that is just another name for vouchers. She said this legislation that would take money away from public schools should be of concern for the general public and businesses. She said that there is concern that if public money goes to religious schools, there is an issue of separation of church and state.

Libby Knox, who is director of development for the Catholic Education Foundation, had opposing views. She spoke in favor of Senate Bill 61. She said the legislation would expand the areas in which tax credits could be used. She said presently there are needy persons who are excluded. She said the program exists according to narrow guidelines established by the courts.


Knox said she was not speaking in favor of House Bill 2119. She said the needy persons helped by the program have a 99 percent high school graduation rate.

Edwin Birch, the executive director for communication and marketing for the Kansas City, Kansas, School District, said he worked for the Kansas City (Missouri) School District, and saw charter schools take away substantial funds from the public school system. Birch also worked as public information officer for the Unified Government of Wyandotte County and Kansas City, Kansas.

Stephen Linkous, the chief of staff for the Kansas City, Kansas, School District, said he comes from Denver where charter schools diluted funds for public schools.

There was discussion about Senate Bill 50 which, passed out of the Senate 35-3; it would help assure sales tax is collected on internet sales.

Also discussed was the legislation that would affect STAR bonds; The minimum for a STAR bond financing project would be $75 million; Mike Taylor, the lobbyist for the Unified Government, said that a $50 million minimum would be more practical. A STAR bond project uses the money that would normally be collected from sales tax to pay for infrastructure such as streets and sewers.

Murrel Bland is the former editor of The Wyandotte West and The Piper Press. He is executive director of Business West.