SBA to increase loan limit for COVID-19 disaster loans
The U.S. Small Business Administration is increasing the maximum amount small businesses and nonprofits can borrow under its COVID-19 Economic Injury Disaster Loan (EIDL) program. From the week of April 6, 2021, the SBA is raising 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.
“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 business. However, the pandemic has lasted longer than expected and they need larger loans. Many have called on 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, ”said Isabella Casillas Guzman, Director of the SBA.