SBA Increases EIDL CapsMarch 25, 2021
On Wednesday, March 24, the U.S. Small Business Administration (SBA) announced a series of reforms to the COVID-19 Economic Injury Disaster Loan (EIDL) program.
SBA’s EIDL program provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. The program has provided billions of dollars in working capital, helping over 3.7 million small businesses employing over 20 million people stay afloat during the COVID-19 crisis. Still, many small businesses owners and entrepreneurs encountered problems with the program, and these new changes are going to ensure that EIDL can provide better relief to more business owners.
Beginning the week of April 6, the loan limit for EIDL will go from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000. The reforms will be retroactive, meaning that those who have already participated in the program will still be eligible for the expanded benefits.
At this time, businesses that received a loan based on the current limits do not need to submit a request for an increase. The SBA will be reaching out by email to provide more details on how to apply for an increase closer to the April 6 increase date. New applicants and loans already in process when the new limits are implemented will automatically be considered for loans subject to the new limits.
The SBA previously announced on March 12
, that the deferment periods for all disaster loans would be extended until 2022 to give businesses more time to build back. For EIDL loans made in 2020, the first payment due date will be extended to 24-months from the date of the note, and for loans made in 2021, the due date will be 18-months from the date of the note.
Read more about the EIDL program here.