Repayment deferment on a number of Economic Injury Disaster Loans will be ending soon, according to the Small Business Administration.

The SBA approved 6,552 Economic Injury Disaster Loans (EIDL) in North Dakota, totaling over $745 million.

The EIDL program is designed to provide small businesses with working capital needed to overcome the negative financial impacts of a declared disaster. The program has a 30-year maturity. Under the COVID disaster declaration, EIDL loan payments are deferred for two years, with principal and interest payments required over the remaining 28 years. SBA began approving COVID EIDL applications in March 2020.

Al Haut, SBA district director serving North Dakota, noted business owners holding early loans should start preparing to make payments.

Borrowers also should review their loan authorization to ensure they are following certain provisions, he said. For loans above $25,000, SBA filed a lien on the business assets. If a business owner wants to sell a piece of equipment or the business itself, SBA will need to approve the release of its lien. In some cases, this may require a cash payment to reduce the loan balance. These requests are approved by one of SBA’s disaster loan centers and borrowers should be prepared to make their request well in-advance of the actual sale.

EIDL borrowers with questions should contact SBA’s servicing center at 800-487-6019.