The U.S. Small Business Administration dramatically increases the maximum amount small businesses and nonprofits can borrow through its COVID-19 Economic Disaster Loan program – and the time they have to pay it back.

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

SBA administrator Isabella Casillas Guzman said the duration of the pandemic made the change necessary.

“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 to help save their businesses, ”she said. “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’m proud of more than tripling the amount of funding they can access.

Businesses that receive a loan subject to the 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 companies can request an increase as the April 6 implementation date approaches. Any new loan application and any loan in progress when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic damage up to a maximum of $ 500,000.

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

Questions about SBA COVID-19 EIDL and Disaster Loan Payments can be emailed to [email protected] or directed to SBA’s Customer Service Center at
800-659-2955 (800-877-8339 for the deaf and hard of hearing).