SBA Economic Impact Disaster Loan (EIDL)
Lenders have the authority to defer payments up to 6 months.
The borrowers financial information should be reviewed and analyzed in accordance with prudent servicing and lending practices to ensure that the borrower’s cash flow problems are temporary and that the borrower is otherwise viable prior to granting a deferment.
The SBA has requirements for reporting loans that is in deferral.
The loan must be reflected in the 1502 report with a status “4”. This advises the SBA that the principle or principle interest (P&I) payments have been deferred.
In addition to status “4”, the next installment due date, which is the date the borrower is scheduled to make its next payment, should be the date the borrower is to resume making payments. Status “4” should be entered every month the loan is in deferred status.
You should document the loan files with justification that deferment is due to COVID-19 economic disruption.