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If your freelance business received an Economic Injury Disaster Loan (EIDL) during the COVID pandemic, it will soon be time to start paying it back, given that The U.S. Small Business Administration’s (SBA) extended 30-month deferment period is coming to a close. Under the SBA’s existing deferment program loan payments were deferred for up to 30 months from the loan inception under the COVID Economic Injury Disaster Loan (EIDL) program. To help small businesses and freelancers who are still struggling financially, the SBA announced a Hardship Accommodation Plan in March of 2022 which provided the option of paying just 10% of monthly payments or $25 for up to six months. The Hardship Accommodation Plan is available if you meet certain conditions and enroll in it 60 calendar days before your first EIDL payment due date. The instructions from the SBA are as follows: ● If your loan amount is less than or equal to $200,000: To enroll in theHardship Accommodation Plan, create a CAFS account or log in to yourexisting account. Within CAFS, hover over "Borrower" and select "BorrowerSearch." Select the appropriate loan number and request the Hardship Accommodation on the Loan Info page. ● If your loan amount exceeds $200,000: To apply, contact the COVID-19 EIDLServicing Center at 833-853-5638 or [email protected] (andinclude “Hardship Accommodation Plan” in the subject line). You will becontacted by a loan specialist regarding requirements. Some important caveats about the EIDL deferment: ● It does not apply to non-COVID disaster home and business loans. ● It is effective for all COVID-19 EIDL loans approved in calendar years 2020,2021, and 2022. ● Interest will continue to accrue on the loans during deferment and may result in ● You can make partial or full payments during the deferment period but are not required to. ● The SBA recommends using www.pay.gov to make your payments and will only ● When the deferment period ends, COVID-EIDL Borrowers will be required to
via Freelancers Union Blog https://blog.freelancersunion.org/2022/12/21/hardship-accommodation-plan-for-economic-injury-disaster-loans-may-help-your-freelance-business-cash-flow/
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AuthorI have 5+ years experience working as a medical transcriptionist. When I am not working, I enjoy sports like playing basketball or judo. I love making friends and connections. Archives
April 2023
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