The U.S. Small Business Administration (SBA) has taken steps to assist small businesses grappling with the challenges of loan compliance and repayment in the wake of the pandemic. In a move aimed at bolstering the financial health of small enterprises, the SBA has announced expanded flexibility for borrowers of COVID Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans.
Starting from January 1, 2024, the SBA has introduced a 60-day goodwill exception period for COVID EIDL and PPP borrowers with loans under $100,000. This period, which extends through March 3, 2024, is designed to help these businesses come into compliance and avoid the severe consequences of defaulting on a government loan.
