When Do EIDL Loan Payments Start?

When Do EIDL Loan Payments Start?

When Do EIDL Loan Payments Start?

Small business owners who were affected by the COVID-19 pandemic were given access to various loans and grants to help them keep their businesses afloat. One of the most popular loans was the Economic Injury Disaster Loan (EIDL) offered by the Small Business Administration (SBA). But when do EIDL loan payments start? This article aims to provide a comprehensive answer to this question.

What is EIDL Loan?

The EIDL loan is a low-interest loan offered by the SBA to small businesses that have suffered economic injury due to a declared disaster. The loan can be used to cover various business expenses, including payroll, rent, and utilities.

How does EIDL Loan work?

After applying for an EIDL loan and getting approved, the loan amount is disbursed to the borrower’s bank account. The borrower is required to make regular payments towards the loan until it is fully paid off.

Eligibility Criteria for EIDL Loan

To be eligible for an EIDL loan, a small business must have fewer than 500 employees, be located within the United States or its territories, and have suffered economic injury due to a declared disaster.

When do EIDL Loan payments start?

EIDL loan payments start 12 months after the loan is disbursed. This means that borrowers have a one-year grace period before they start making payments towards the loan.

What is the EIDL Loan repayment period?

The EIDL loan repayment period can be up to 30 years, depending on the borrower’s ability to repay the loan. The SBA will work with the borrower to determine an appropriate repayment period.

How to make EIDL Loan payments?

EIDL loan payments can be made through the borrower’s bank account using automatic payments or by mailing a check to the SBA.

What is EIDL Loan forgiveness?

EIDL loan forgiveness is the cancellation of all or part of the remaining loan balance. The borrower is no longer required to make payments towards the forgiven amount.

Who is eligible for EIDL Loan forgiveness?

Small businesses that received an EIDL loan of $150,000 or less are eligible for automatic loan forgiveness. For loans over $150,000, the borrower must provide documentation proving that the loan was used for eligible expenses.

How to apply for EIDL Loan forgiveness?

Borrowers can apply for EIDL loan forgiveness by submitting an application to the SBA. The application must include documentation proving that the loan was used for eligible expenses.

Consequences of Missing EIDL Loan Payments

Missing EIDL loan payments can have serious consequences. The borrower may face late fees, penalty interest rates, and damage to their credit score. In extreme cases, the SBA may take legal action against the borrower to collect the outstanding debt.

What to do if you miss EIDL Loan payments?

If you miss EIDL loan payments, it’s important to contact the SBA as soon as possible to discuss repayment options. The SBA may be able to offer a repayment plan that works for the borrower’s financial situation.

Will EIDL loans be forgiven in the future?

EIDL loans are eligible for forgiveness, but the process and criteria for forgiveness differ from those of the Paycheck Protection Program (PPP) loans. As of now, only the EIDL loans that were issued in 2020 and are under $150,000 are eligible for automatic forgiveness. Borrowers who received loans over $150,000 will need to provide documentation to prove that they used the funds for eligible expenses.

The SBA has not provided any information on whether EIDL loans will be forgiven in the future or if there will be any changes to the criteria for forgiveness. However, borrowers should keep in mind that they are required to make regular payments towards the loan unless they are notified of forgiveness. If there are any updates or changes to the forgiveness criteria, the SBA will provide guidance and instructions to borrowers.

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What is the timeframe for targeted Eidl advance?

The timeframe for receiving a targeted EIDL advance can vary depending on several factors, including the volume of applications that the Small Business Administration (SBA) is processing and the specific circumstances of the applicant. However, the SBA has stated that it aims to process targeted advance applications within 21 days of receiving all required documentation.

It’s important to note that the targeted EIDL advance is only available to certain eligible businesses that were previously denied an EIDL advance or received a partial EIDL advance. The SBA will determine eligibility based on factors such as location, industry, and economic distress. Additionally, the amount of the targeted advance will depend on the number of employees the business has and the amount of economic loss it has suffered.

If a business is eligible for the targeted EIDL advance, it will receive an email invitation from the SBA with instructions on how to apply. Once the application is submitted, the SBA will review it and communicate with the applicant about the status of the advance. It’s important to monitor the email account associated with the application and to respond promptly to any requests for additional information to ensure the timely processing of the targeted advance.


Can I defer EIDL loan payments?

Yes, borrowers can request a deferment of EIDL loan payments for up to 18 months.

How much interest is charged on EIDL loans?

The interest rate for EIDL loans is currently 3.75% for small businesses and 2.75% for non-profit organizations.

Can I prepay my EIDL loan?

Yes, borrowers can prepay their EIDL loan without penalty.

What happens if I default on my EIDL loan?

If a borrower defaults on their EIDL loan, the SBA may take legal action to recover the outstanding debt.

How long does it take to receive EIDL loan forgiveness?

The SBA has not provided a timeline for EIDL loan forgiveness, but borrowers should expect the process to take several months.


In conclusion, EIDL loan payments start 12 months after the loan is disbursed, and the repayment period can be up to 30 years. Borrowers should make timely payments to avoid late fees and damage to their credit scores. For those who are struggling to make payments, it’s important to contact the SBA to discuss repayment options.