SBA increases loan terms for Economic Injury Disaster Loan program
The U.S. Small Business Administration is increasing the maximum amount small businesses and nonprofit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, the SBA is raising the loan limit for the COVID-19 EIDL program 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. Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time, the agency said. The SBA will reach out directly via email and provide more details about how businesses can request an increase closer to the April 6 implementation date. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans with the new terms. This new relief builds on the SBA’s March 12 announcement that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022. Questions about SBA COVID-19 EIDL and disaster loan payments can be emailed to DisasterCustomerService@sba.gov or directed to SBA’s Customer Service Center at 800-659-2955.