SBA Increasing Maximum for EIDL Loans to $500,000
WASHINGTON, D.C. – The Small Business Administration is raising the maximum amount available through the COVID-19 Economic Injury Disaster Loan program.
Beginning April 6, loans for six months of economic injury will have a cap of $150,000 while the 24-month period has a maximum of $500,000.
The loans are available to help businesses that have been impacted by the pandemic cover financial obligations and operating expenses. Economic Disaster Injury Loans have a 30-year terms with a 3.75% fixed rate for businesses and a 2.75% fixed rate for nonprofits. More information on EIDL loans is available on the SBA’s website HERE.
Businesses that have already received a loan through the program do not need to submit a request for an increase at this time. The SBA will contact borrowers directly via email with details about how they can request an increase as the April 6 start date gets closer.
Any applications that are currently being processed or new applications will automatically be considered for loans covering up to 24 months of economic injury up to $500,000.
The maximum loan increase builds on the Small Business Administration’s announcement March 12 that deferment periods for all disaster loans would be extended until next year. The first payment due date for loans made in 2020 will be 24 months from the date of the note. For loans made in calendar year 2021, the first payment is due 18 months from the date of the note.
“More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses,” said SBA Administration Isabella Casillas Guzman in a statement. “However, the pandemic has lasted longer than expected, and they need larger loans. Many have called on SBA to remove the $150,000 cap. We are here to help our small businesses and that is why I’m proud to more than triple the amount of funding they can access.”
Published by The Business Journal, Youngstown, Ohio.