WASHINGTON – The United States Small Business Administration (SBA) is expanding its COVID-19 loan program starting the week of April 6.
The SBA is increasing the maximum loan amount to $ 500,000 from $ 150,000 under the Economic Disaster Lending Program (EIDL) and extending the economic hardship period to 24 months from the current six months.
“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, “said Isabella Casillas Guzman, director of the SBA.
“However, the pandemic has lasted longer than expected and they need larger loans. Many have asked the SBA to remove the $ 150,000 cap,” she said.
Businesses that receive a loan below the current limit of $ 150,000 do not need to request a raise. The agency will contact you by email to provide more details. Loans considered when the new limits take effect on April 6 will automatically count towards the increases.
The latest changes to EIDL follow a recent decision by the SBA to extend the deferral of all disaster loans until 2022.
Questions can be directed to [email protected] or 800-659-2955. The phone number is 800-877-8339 for the deaf and hard of hearing.
EIDL program loans have a fixed rate of 3.75% for businesses and 2.75% for nonprofit groups. The term is 30 years, but there are no penalties or prepayment charges. EIDLs differ from Paycheck Protection Program loans in that they must be repaid.