What You Need to Know
- Many small businesses and nonprofits “called on SBA to remove the $150,000 cap,” the SBA administrator said.
- Small businesses and nonprofits can borrow more starting April 6.
- About 3.7 million businesses have taken EIDLs.
The Small Business Administration said Wednesday that starting the week of April 6, it will boost the maximum amount that small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program.
The loan limit has been raised from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000.
“The pandemic has lasted longer than expected,” SBA Administrator Isabella Casillas Guzman said in a statement.
Many small businesses and nonprofits, Guzman said, “called on SBA to remove the $150,000 cap. We are here to help our small businesses and that is why I’m proud to more than triple the amount of funding they can access.”
Guzman said that more than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital.