SBA Increases COVID-19 Loan Program Limits | 2021-03-30

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The U.S. Small Business Administration (SBA) has increased the maximum amount small businesses can borrow under its COVID-19 Economic Disaster Lending (EIDL) program.

Starting the week of April 6, 2021, the SBA increases the loan limit for the COVID-19 EIDL program from six months of economic harm with a maximum loan amount of $ 150,000 to a maximum of 24 months of economic harm with a maximum loan amount of $ 500,000.

“More than 3.7 million businesses employing more than 20 million people have found financial assistance through SBA Economic Disaster Loans, which provide low-interest emergency working capital for help save their businesses, ”said Isabella Casillas Guzman, administrator of the SBA.

“However, the pandemic has lasted longer than expected and they need bigger loans. Many have asked the SBA to remove the $ 150,000 cap. We’re here to help our small businesses and that’s why I am. proud of more than tripling the amount of funding they can access.

According to the SBA, businesses that receive a loan subject to current limits do not need to submit an increase request at this time. The SBA will contact you directly via email and provide more details on how businesses can request an increase as the April 6 implementation date approaches.

Any new loan application and any outstanding loan when the new loan limits are implemented will automatically count towards loans covering 24 months of economic damage, up to a maximum of $ 500,000.

This new relief builds on the SBA’s previous announcement of March 12, 2021 that the agency would extend deferment periods for all disaster loans, including EIDL COVID-19, until 2022 to give businesses more time to rebuild, ”SBA officials say.

“In order to defer all EIDL payments to 2022, the SBA will extend the due date of the first payment for disaster loans made in 2020 to 24 months from the date of the note and 18 months from the date of the note. the rating date for all loans made in calendar year 2021. “

Questions about SBA COVID-19 EIDL and Disaster Loan Payments can be emailed to [email protected] or directed to the SBA Customer Service Center at (800) 659-2955.

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