Robin Saks Frankel – Forbes Councilor
Economic Disaster Lending (EIDL) has just received a boost. Starting the week of April 6, the Small Business Administration (SBA), which oversees the loan program, is improving the terms of the Covid-19 EIDL program, from coverage for six months of economic distress to a maximum loan of $ 150,000. at 24 months and over. up to a maximum loan of $ 500,000.
“We’re here to help our small businesses, and that’s why I’m proud of more than tripling the amount of funding they can access,” SBA administrator Isabella Casillas Guzman said in a press release.
What this means for new and existing EIDL loans
As of February 15, more than 3.7 million Covid EIDL loans had been approved for a total of over $ 200 billion in approved funds.
According to the SBA, some loans approved before the week of April 6 will be eligible for an increase based on the revised maximum loan amounts. Businesses that have received a loan subject to the current loan limit do not need to submit an increase request. The SBA says it will contact applicants directly.
Any new loan application and any loan in progress when the new loan limits take effect will automatically be considered for loans covering 24 months of business loss for a maximum of $ 500,000.
The aid increase comes just 12 days after the SBA issued additional guidance that the agency would extend deferment periods for all disaster loans – not just Covid EIDLs – until in 2022 to give affected businesses more time to recover. The first payment deadline for disaster loans in 2020 is 24 months after loan approval; the first payment for all loans made in 2021 is 18 months after approval.