SBA offers an Increase to the EIDL Max Loan Amount Effective April 6, 2021
On March 24, the U.S. Small Business Administration (SBA) announced that it would be increasing the max loan amount for the Economic Injury Disaster Loan (EIDL) from $150,00 to $500,000, effective April 6, 2021.
The EIDL was created to assist small businesses and nonprofit organizations who were experiencing a temporary loss of revenue due to the pandemic. Small business owners, including agricultural businesses, in all U.S. States, Washington D.C. and territories, can apply. If granted, the funds are to be used for working capital and normal operating expenses.
Top Items to Bear in Mind:
- The loan amount has increased to $500,000 – For loans approved starting the week of April 6, 2021: 24-months of economic injury with a maximum loan amount of $500,000.
- Previous EIDL recipients are eligible for a loan increase – According to the SBA, “Some loans approved prior to the week of April 6, 2021 will be eligible for an increase based on new loan maximum amounts announced March 24, 2021. Businesses that received a loan subject to current loan limit do not need to submit a request for an increase at this time. SBA will reach out directly via email closer to the April 6, 2021 implementation date to provide more details about how businesses can request an increase.”
- Terms of the loan remain consistent – Rates remain at 3.75% (fixed) for businesses and 2.75% (fixed) for nonprofit organizations. The loans are for 30-year terms and there are no pre-payment penalties or fees.
- Apply directly to the SBA – The EIDL is offered directly through the SBA and not through third-party lenders. You can apply for your EIDL here.
If you have any questions about the EIDL, please contact your usual KSBarlevi manager. We are happy to help and committed to ensuring your business success.