TODAY'S PAPER
Good Morning
Good Morning
BusinessCoronavirus

SBA defers repayment of loans for Superstorm Sandy repairs

Repayment of Sandy-related disaster loans loans has been

Repayment of Sandy-related disaster loans loans has been deferred until April 1. Above, Long Beach after the storm, in October 2012. Credit: Alejandra Villa

Businesses and homeowners who received disaster loans from the federal government to rebuild after Superstorm Sandy in 2012 don’t have to resume making payments until April 1, officials said.

It's the second deferment on payments on Economic Injury Disaster Loans from the U.S. Small Business Administration because of the coronavirus pandemic.

The first deferment, announced in March as the virus first struck, expired on Dec. 31. The deferment now has been extended through March 31, SBA officials said.

The second deferment, like the first, is automatic and loan recipients don’t need to make individual requests of SBA. They will still receive payment notices stating no payment is due and showing the amount of accrued interest.

The deferment doesn’t cancel preauthorized debit or recurring payments on the EIDL. The payments must be canceled by the borrower via pay.gov, an online bill pay service, or by calling SBA.

"Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment," the agency said.

On April 1, "borrowers will be required to resume making regular principal and interest payments. Borrowers that canceled recurring payments will need to reestablish the recurring payment," SBA said.

The deferment covers loans from all previous disasters including Sandy, which hit Long Island on Oct. 29, 2012.

More than $90 million in loans were approved for businesses and about $730 million for homeowners harmed by Sandy in Nassau and Suffolk counties, according to a Newsday analysis of SBA data as of October 2014. The number of businesses and homeowners that accepted the loans wasn’t immediately available.

Questions about the deferment may be directed to SBA’s EIDL processing centers in Birmingham, Alabama (800-736-6048 or BirminghamDLSC@sba.gov), and El Paso, Texas (800-487-6019 or ElPasoDLSC@sba.gov).

More information also is available at nwsdy.li/sandydefer21.

Sign up for COVID-19 text alerts at newsday.com/text.

A note to our community:

As a public service, this article is available for all. Newsday readers support our strong local journalism by subscribing.  Please show you value this important work by becoming a subscriber now.

SUBSCRIBE

Cancel anytime

More news