July 23, 2020
Do any unused funds still accrue interest at 1% even if we have deferred principal payments?
Posted by Armanino Financial Advisory Team
Yes, the interest on the entirety of the loan begins accruing at the time the loan was disbursed to you. The SBA will pay the accrued interest to the lender on the amount that is forgiven when they complete the forgiveness process. The borrower will be responsible for all accrued interest on the unforgiven portion of the loan, regardless of when repayments begin.