SBA Covid EIDL program shows no 'abnormal' signs of nonpayment - San Francisco Business Times

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Exclusive: SBA sees no 'abnormal' nonpayment rates for Covid EIDL program

The Small Business Administration is seeing millions of its Covid-19 Economic Injury Disaster Loans roll over into servicing, but there is no sign of higher-than-normal rates of nonpayment on the loans.that the agency has started servicing the 3.9 million EIDL loans it made between 2020 and 2022.

“We will continue to track it as loans continue to become due,” Guzman said. “The bulk of them came due in January, so they are starting to roll into the portfolio.” Meanwhile, the Paycheck Protection Program continues toward the end of the forgiveness phase, with roughly 95% of the loans forgiven, Guzman said. But she stressed that not all businesses will likely seek forgiveness, with some opting to make payments as it converts to a traditional loan.

She stressed that small-business owners who made so-called"good faith errors" will have to pay back their loans, weighing in on a dispute brought by small-business advocates who claimed constantly changing PPP rules in 2020 and 2021 should

 

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