SBA to increase loan limit for COVID-19 loans

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April 1 – The U.S. Small Business Administration announced it will increase the maximum amount small businesses and nonprofits can borrow under its COVID-19 Economic Disaster Lending Program.

Effective April 6, the organization’s loan limit for the program will drop from 6 months of economic harm with a maximum loan amount of $ 150,000 to a maximum of 24 months of economic harm with a maximum loan amount of. $ 500,000.

“Over 3.7 million businesses employing over 20 million people have found financial assistance through SBA Economic Disaster Loans, which provide emergency working capital at low interest rates. to help save their businesses. However, the pandemic has lasted longer than expected, and they need bigger loans. Many have asked the SBA to remove the $ 150,000 cap. 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, ”said Isabella Casillas Guzman, Director of the SBA. A press release.

Businesses that receive a loan subject to the current limits will not need to submit an increase request at this time, as SBA will contact directly via email and provide more details on how to request an increase closer to the current limit. April 6 implementation date. . Those who are currently in the process of being applied for will automatically be taken into account for the increase.

The latest announcement follows the SBA’s March extension of the deferral periods for all disaster loans until 2022. In order to defer all EIDL payments to 2022, the SBA will extend the due date of the first payment for disaster loans made in 2020 at 24 months from the date of the note and 18 months from the date of the note for all loans made in 2021.

For more information, contact [email protected] or call 1-800-659-2955.

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