SBA increases loan limit for small businesses affected by COVID-19

SIOUX FALLS, SD • The US Small Business Administration has said it is increasing the maximum amount small businesses and nonprofits can borrow under its COVID-19 economic disaster loan program.

Starting the week of April 6, the SBA will increase 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 a maximum loan amount of $ 500,000, the SBA announced on Wednesday, March 24.

“More than 3.7 million businesses employing more than 20 million people have found financial assistance 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 statement.

“However, the pandemic has lasted longer than expected and they need bigger loans. Many have called on the SBA to remove the $ 150,000 cap. We’re here to help our small businesses and that’s why I’m proud to more than triple the amount of funding they can access.

The administration said businesses that receive a loan subject to current limits do not need to submit a request for an increase. The SBA will contact you directly via email and provide more details on how businesses can request a raise.

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Any new loan application and any loan in progress when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic damage up to a maximum of $ 500,000.

For questions and more information, direct your questions to [email protected] or call 800-659-2955 (or 800-877-8339 for the deaf and hard of hearing).

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