SBA Announces Changes to COVID-19 EIDL Loans
The U.S. Small Business Administration (SBA) recently announced a major update to the COVID-19 Economic Injury Disaster Loan (EIDL) program. As of the week of April 6, 2021, the maximum loan amount for COVID-19 EIDLs will increase to $500,000.
Under the CARES Act, the EIDL program was expanded to cover eligible businesses experiencing substantial economic injury resulting from the pandemic. The act also relaxed a number of traditional EIDL loan stipulations, making COVID-19 EIDL loans more readily available.
This latest update from the SBA drastically expands both the maximum loan limit and the period of economic injury that they cover. Previously the limit for COVID-19 EIDL loans was a maximum of $150,000 covering six months of economic injury. As of the week of April 6, 2021, the maximum loan amount is $500,000 and covers up to 24 months of economic injury.
Loan applicants whose loans are already in process at the time of the EIDL expansion will automatically be considered for the new maximum limits. Additionally, current COVID-19 EIDL loan recipients will be able to request a loan increase. Borrowers should visit the SBA website for further guidance.