The SBA announced on Wednesday that it is increasing the maximum amount that small businesses and nonprofit organizations can borrow through its COVID-19 Economic Injury Disaster Loan, or EIDL, program.
Beginning 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, according to the agency.
Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time, and 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 covering 24 months of economic injury up to a maximum of $500,000, according to the SBA.
The increased loan limit follows SBA’s March 12 announcement that it would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 in an effort to offer more time for businesses to build back. To shift all EIDL payments to 2022, the SBA has said that it will extend the first payment due date for disaster loans made in 2020 to 24 months from the date of the note and to 18 months from the date of the note for all loans made in the calendar year 2021.