The U.S. Small Business Administration recently announced it will be waiving the interest rate for the first year on new disaster loans by extending the initial payment deferment period automatically to 12 months.
SBA Waives Disaster Loan Interest and Payments for First Year
This means new disaster loan borrowers will now have up to one year from the date of the note to begin making payments, instead of the usual five months.
Interest on such loans will not begin to accrue until 12 months from the date of the initial loan disbursement.
This is great news for borrowers as they will no longer need to pay interest accrued on all disbursed loan funds during this new initial payment deferment period.
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