For those of you with E.I.D.L. loans, the Economic Impact Disaster Loan. If you have those loans you are expecting first, often make payment within 12 months of taking those loans out. The S.B.A. extended that last year and gave you 24 months. Well, this week, we also received another extension. So it is 30 months before you have to begin making payments on your loan. So this notice came out via email. If you did not receive one, it is not a big deal. The S.B.A. is not great with their email team, but this would be the email announcing that you now have another six-month deferment. So in looking at that, what does that mean for you and me while we are going to go for 24 months to 30 months. Interest is still accruing. Okay. You are at 3.75% or 2.75% for nonprofits.
So interest is still accruing and adding to your loan. Many people are asking, well, how do I make a payment if I want to? How will I know when I am supposed to start making payments? How do I know what my balance is and the interest that has been accruing? There are pieces of information in this email to allow you to go to pay.gov. You can log in there and set up an account, which will allow you to see your loan, just like an online banking presentation. I do recommend setting this up. You do not need to make payments yet, but you want to ensure you have that login for future use. Furthermore, that will be where you also go in to set up your recurring payments later on.
You can check that out and let us know. But the good news is you don’t have to come up with cash just yet for most people. If they got those loans in April or May of 2020, that now means that you have two years, which would be 2022 plus six more months. So those would have been coming to April or May of this year, but now you get to add six months. So that would be October or November of 2020, depending on when your loan was issued. So take notice when that date is, give this account set up and mark it on your calendar to check back later to set up your payments. All right, have a great day.
I’m Donna Bordeaux with PYOPAccounting.com. Please follow us on Facebook and Instagram. Make sure you check out our blog and our website from the link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. To contact me, email me at donna@pyopaccounting.com.
Donna Bordeaux, CPA with PYOPAccounting.com
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