I’m sure you’ve noticed that your PPP and EIDL Loans don’t require payments. There’s a lot of misinformation out there in reference to this, so please allow me to clarify.
As part of the C-19 debt relief package, the SBA will pay 6 months of principal, interest, and any associated fees that borrowers owed for current 7(a), 504, and microloans in regular servicing status as well as any new loans that were disbursed prior to September 27, 2020. Borrowers do not need to apply or do anything special for this assistance.
This does not apply to PPP and EIDL Loans. Just because you are not required to make payments, does not mean that interest is not accruing.
On the PPP Loan, you are not required to make payments during the covered period, or during the period when you are getting the loan forgiven. But you will certainly be charged interest on any remaining portion which will be accrued from the date of the loan.
The EIDL is similar. Payments are suspended on the loan for the first twelve months, but that does not mean that interest is not accruing. It will be added on with your first payment.
The interest and principal that The CARES Act paid were for the regular SBA Loans, not the specialty ones.
Let me leave you with this.
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