The Small Business Administration announced earlier this week that it would again defer interest and principal payments on their EIDL Loans and other Covid-19 related loan packages. The exact amount of additional deferrals depend on the origination date of the loan.
– An additional 12 month extension is given to all loans made in 2020. These loans will begin payments 24 months after their origination date.
– Loans made in 2021 get another 6 months. These loans begin payments 18 months after their origination date.
– Loans made prior to March 1st of 2020, get an additional 12 month deferral, as long as they were in regular servicing at the beginning of the pandemic.
It should be noted that this payment deferral is not an interest deferral as well. When payments begin, the additional unpaid interest will be added into your payments.
At this point, if they keep deferring this thing, borrowers might never need to repay their loans.
The SBA sent out emails a couple of days ago explaining the extension to borrowers given their particular circumstance. If you didn’t receive a notice, please contact the SBA for further details.
Let me leave you with this.
Another C-19 variant is making the news in western Europe. It’s a subvariant of Omicron named Ba.2 that appears to be more transmissible than regular omicron.
It’s causing a major outbreak overseas. Germany was reporting more than 250K new cases daily at the end of last week. Brittain, the most watched of western european nations because what happens there tends to happen here, now has a rolling seven day average above 65K new cases.
Over the past two years, whenever western Europe has a new outbreak, the US is sure to follow in a few short weeks.
The problem is that the new variant has been around for such a short period of time that scientists haven’t been able to test its strength. Hospitalizations are increasing in areas affected by the wave, but researchers say it’s too early to tell how bad it will become.
At a White House briefing a couple of days ago, the press secretary confirmed that 35K new cases of the variant had already been detected in the US.
I doubt sincerely that they’ll shut everything down again. We’ve been down that rabbit hole too many times before. The economy is just getting rolling again, but that will depend entirely on the strength of the coming wave.
Officials may be put into a position where they don’t have a choice.
If you’ve read me for a while, you know that I’m all about planning. When we know that something is coming and we’re prepared, whatever happens is somehow easier.
It’s the nasty surprises in this life that always hurt the most. Make your plans and be ready.
We’re all going to get through this. Let’s get through it together.
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