![]() Now, if you got your EIDL in 2020, you already have a two-year deferment period. So far the agency has approved 3.8 million EIDL loans for roughly 244 billion, although it is unclear how many applicants have asked for an increase among those. It says here that they’re going to ensure a repayment period of two years after getting the loan. ![]() There’s also a new deferment payment period. Now instead of the 500,000 limit, there’s a new 2 million limit. Small Business Administration (SBA) announced major modifications to the COVID-19 Economic Injury Disaster Loans (EIDL) program, including raising the loan cap from 500,000 to 2 million and adding business debt payments to the list of ways businesses can use the loan proceeds. We are here to help our small businesses and that is why I’m proud to more than triple the amount of funding they can access. The biggest one and increase on the EIDL cap. Many have called on SBA to remove the $150,000 cap. “However, the pandemic has lasted longer than expected, and they need larger loans. “More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses,” said SBA Administration Isabella Casillas Guzman in a statement. For loans made in calendar year 2021, the first payment is due 18 months from the date of the note. This is more than 3x the original amount and t his is good. First, the max loan amount was increased from a 150,00 max loan amount to a max loan amount of 500,000. The first payment due date for loans made in 2020 will be 24 months from the date of the note. The SBA just expanded the EIDL loan in two major ways: 1. The maximum loan increase builds on the Small Business Administration’s announcement March 12 that deferment periods for all disaster loans would be extended until next year. The SBA will contact borrowers directly via email with details about how they can request an increase as the April 6 start date gets closer.Īny applications that are currently being processed or new applications will automatically be considered for loans covering up to 24 months of economic injury up to $500,000. Borrowers should visit the SBA website for further guidance.Businesses that have already received a loan through the program do not need to submit a request for an increase at this time. Additionally, current COVID-19 EIDL loan recipients will be able to request a loan increase. Loan applicants whose loans are already in process at the time of the EIDL expansion will automatically be considered for the new maximum limits. Small Business Administration (SBA), you may be eligible to receive. As of the week of April 6, 2021, the maximum loan amount is $500,000 and covers up to 24 months of economic injury. If your business received a COVID-19 Economic Injury Disaster Loan (EIDL) from the U.S. Previously the limit for COVID-19 EIDL loans was a maximum of $150,000 covering six months of economic injury. This Covid Injury Disaster Loan (EIDL) program has been designed by the federal government to serve/ support small businesses. This latest update from the SBA drastically expands both the maximum loan limit and the period of economic injury that they cover. The act also relaxed a number of traditional EIDL loan stipulations, making COVID-19 EIDL loans more readily available. The deferment period for any loan increase will be 24 months from the date the COVID-19 EIDL loan was first disbursed not the date of the increase. ![]() Under the CARES Act, the EIDL program was expanded to cover eligible businesses experiencing substantial economic injury resulting from the pandemic. ![]() As of the week of April 6, 2021, the maximum loan amount for COVID-19 EIDLs will increase to $500,000. Small Business Administration (SBA) recently announced a major update to the COVID-19 Economic Injury Disaster Loan (EIDL) program. SBA Announces Changes to COVID-19 EIDL Loans ![]()
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