The US Small Business Administration will increase the loan limit; PPP application date has been extended
the United States Small Business Administration will soon increase the maximum loan limit for its economic disaster loan, and the application deadline has been extended for paycheck protection program repayable loans.
Starting the week of April 6, the SBA increases the loan limit for the COVID-19 EIDL program from six months of economic harm with a maximum loan amount of $ 150,000 to up to 24 months of economic harm with an amount maximum loan of $ 500,000. The PPP loan application deadline, also administered by the SBA, has been extended to May 31. The program was due to expire at the end of March.
“More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA Economic Disaster Loans, which provide low-interest emergency working capital to help save their businesses, ”SBA administrator Isabella Casillas Guzman said in a press release. “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.
Businesses that have previously applied for a disaster loan within current limits do not need to submit an increase request. The SBA will reach out to applicants via email and provide more details on how companies can request a raise, closer to the April 6 implementation date. New loan applications and all loans in process when the new loan limits take effect will automatically be considered for loans covering 24 months of economic harm, up to a maximum of $ 500,000.
On March 12, the SBA extended the deferral deadline for all EIDLs loans until 2022.
Questions about COVID-19 SBA EIDL and Disaster Loan Payments can be emailed to [email protected] or directed to the SBA Customer Service Center at 1-800-659-2955 ( 1-800-877-8339 for the hearing impaired).