How COVID EIDL repayment works

A COVID EIDL is paid straight to the SBA, not a bank — and the long deferment that made it easy to forget is over for everyone. Here is how the repayment actually works.

Short answer. You repay directly to the SBA at 3.75% (2.75% for nonprofits) over a 30-year term, managed through the MySBA Loan Portal. The 30-month payment deferment every borrower received has ended, so payments are due. There is no prepayment penalty — you can pay extra or pay it off whenever you can.

The terms you signed

COVID EIDL terms are fixed: 3.75% for businesses, 2.75% for nonprofits, amortized over 30 years. That long term keeps the monthly payment low, but it also means most borrowers will carry the loan for decades. Loans over $25,000 are secured by a lien on business assets; loans over $200,000 also carry a personal guarantee — a distinction that matters a lot if you cannot pay (see default).

Paying through MySBA

Payments are made to the SBA through the MySBA Loan Portal (lending.sba.gov), where you can see your balance, make one-off payments, or set up recurring autopay via Pay.gov. Because the loan is serviced by the SBA rather than a bank, this portal — not a lender — is where everything happens.

The deferment is over

Every COVID EIDL came with an initial deferment — interest still accrued, but no payment was due — stretched to 30 months from the note date. Those deferments have all ended. If you have not looked at the loan since 2021, it is almost certainly in repayment now, and unpaid months have been accruing interest and moving toward default.

Can you pay it off early?

Yes, and there is no prepayment penalty. Extra payments go to principal and shorten the loan. If the 30-year balance bothers you, paying ahead when cash allows is entirely allowed — and unlike the collections path, it is fully in your control.

Why this matters now

the record

With deferments long over and roughly 1.3 million borrowers already in default, the gap between “forgot about it” and “in collections” is small. If the payment is unaffordable, do not simply stop — see hardship options before missed months turn into a Treasury referral.

Common questions

How do I pay my COVID EIDL loan?

Directly to the SBA through the MySBA Loan Portal (lending.sba.gov) — one-off payments or recurring autopay via Pay.gov. It is serviced by the SBA, not a bank.

What is the interest rate on a COVID EIDL?

3.75% for businesses and 2.75% for nonprofits, fixed, over a 30-year term.

Is there a penalty for paying my EIDL off early?

No. There is no prepayment penalty — extra payments reduce principal and shorten the loan.

Hardship options If you default Is it forgivable?Glossary: deferment Glossary: personal guarantee EIDL overview

Rules and figures here are current to mid-2026 and can change. This is education, not legal or financial advice — EIDL situations are individual. The SBA’s own hardship and settlement processes are free: deal with the SBA directly through the MySBA Loan Portal or CESC@sba.gov, and talk to a licensed attorney before an Offer in Compromise or bankruptcy. Portfolio figures come from SBA reporting and public records.