The SBA is raising the maximum amount nonprofits and small businesses can borrow under the COVID-19 Economic Injury Disaster Loans (EIDL) program.
Currently, the maximum loan amount is $150,000 for six months of economic injury. Beginning the week of April 6th, the maximum COVID-19 EIDL loan amount will be $500,000 for up to 24 months of economic injury.
On April 6th, existing EIDL borrowers may request a loan increase. COVID-19 EIDL loans processing when the new maximum limit goes into effect will be automatically considered for the new higher limit.
We’re awaiting updated instructions from the SBA on how to request a loan increase through their website.
About EIDL Loans
Economic Injury Disaster Loans are intended to help businesses cover operating expenses and meet financial obligations that could have otherwise been met had the disaster not occurred. Loan proceeds can be used as working capital and to cover normal operating expenses, such as utilities, rent, fixed debt payments, and the continuation of health care benefits.
EIDL loans have a 30-year maturity at 3.75% fixed interest for businesses and 2.75% fixed interest for nonprofits, with no pre-payment penalties or fees.
The SBA deferred EIDL payments until 2022, though interest will accrue during this period.
Contact Us for Assistance
If you need assistance or have any questions or concerns, we’re happy to help. Please call 443-320-4101 or email [email protected] to speak with a member of our firm. Be sure to visit our COVID-19 page for additional updates and resources.
Author: Megan O’Donnell