The SBA announced last week it’s increasing the maximum loan amount small businesses and non-profits can borrow through the EIDL program from $150,000 to a maximum of $500,00 and the period of 6 months up to 24 months.
The Small Business Administration (SBA) announced last week that it’s increasing the maximum loan amount small businesses and non-profit organizations can borrow through the Economic Injury Disaster Loan (EIDL) program. Beginning April 6, the EIDL loan limit will be raised from $150,000 to a maximum of $500,000 and the period of 6 months up to 24 months.
The SBA has confirmed that any new COVID-19 EIDL loans and loans in process when the limit increase goes into effect automatically will be considered for the extended amounts. Additionally, requests for increases from existing EIDL borrowers may begin April 6. Updated instructions on how to request a loan increase soon will be provided by the SBA.
The announcement of the EIDL limit increase follows a recent SBA announcement that it was extending the deferment period for all disaster loans until 2022 to offer more time for businesses to build back. Borrowers may, however, voluntarily make payments during the deferment as interest will continue to accrue on the outstanding loan balance. Economic Disaster Injury Loans have 30-year terms with a 3.75% fixed rate for businesses and a 2.75% fixed rate for non-profits with no penalties for prepayments.
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