SBA to Increase Lending Limit for COVID-19 Economic Injury Disaster Loans (March 24, 2021)
Summary
SBA Release 21-24, dated March 24, 2021, says that starting the week of April 6, 2021 the maximum COVID-19 Economic Injury Disaster Loan rises from six months of economic injury and $150,000 to up to 24 months of economic injury and $500,000. Administrator Isabella Casillas Guzman is quoted saying more than 3.7 million businesses employing more than 20 million people have used the loans and that the SBA is proud to more than triple the amount of funding they can access. Borrowers under the old limits need not request an increase yet, and applications in process will be considered at the new limits automatically. The release adds that disaster loan first payments move to 24 months from the note date for 2020 loans and 18 months for 2021 loans.
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NEWS RELEASE
PRESS OFFICE
Release Date: March 24, 2021 Contact: Press_Office@sba.gov
Release Number: 21-24 Follow us on Twitter, Facebook, Blogs & Instagram
SBA to Increase Lending Limit for
COVID-19 Economic Injury Disaster Loans
WASHINGTON – The U.S. Small Business Administration is increasing the maximum amount
small businesses and non-profit organizations can borrow through its COVID-19 Economic
Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, the SBA is raising the
loan limit for the COVID-19 EIDL program from 6-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.
“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 to help save their businesses. However, the pandemic has lasted
longer than expected, and they need larger loans. Many have 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 ,” said SBA Administrator Isabella Casillas
Guzman.
Businesses that receive a loan subject to the current limits do not need to submit a request
for an increase at this time. SBA will reach out directly via email and provide more details
about how businesses can request an increase closer to the April 6 implementation date. Any
new loan applications and any loans in process when the new loan limits are implemented
will automatically be considered for loans covering 24 months of economic injury up to a
maximum of $500,000.
This new relief builds on SBA’s previous March 12, 2021 announcement that the agency would
extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to offer
more time for businesses to build back. In order to shift all EIDL payments to 2022, SBA will
extend the first payment due date for disaster loans made in 2020 to 24-months from the date
of the note and to 18-months from the date of the note for all loans made in the calendar year
2021.
Questions about SBA COVID-19 EIDL and disaster loan payments can be emailed to
DisasterCustomerService@sba.gov or directed to SBA’s Customer Service Center at
1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).
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About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a
reality. As the only go-to resource and voice for small businesses backed by the strength of
the federal government, the SBA empowers entrepreneurs and small business owners with
the resources and support they need to start, grow or expand their businesses, or recover
from a declared disaster. It delivers services through an extensive network of SBA field offices
and partnerships with public and private organizations. To learn more, visit www.sba.gov.
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