The U.S. Small Business Administration (SBA) is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, the SBA is raising the loan limit from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.
Businesses that already received a loan subject to the current limits do not need to submit a request for an increase at this time. The SBA will reach out directly via email and provide more details on how businesses can request an increase. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic injury up to a maximum of $500,000.
Of additional interest to businesses that already received EIDL funds, the SBA has further deferred repayment on these loans to 24 months from the origination date for loans made in 2020 and 18 months for loans made in 2021.
About the Authors. This update was prepared by HR Pros, LLC, a national HR consulting firm that helps companies reduce operational and employment related risks. Contact Christopher Brown (cbrown@hrpros.biz) or Philip Roach (philipcr@hrpros.biz) for more information.
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