More good news is coming from the SBA for small business owners and nonprofits: The maximum amount these organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program has increased to $500,000 for 24 months of economic injury. This is an increase from the prior loan limit of six months of economic injury with a maximum loan amount of $150,000.
The new limits begin for all applications submitted on or after April 6. Businesses who have previously received EIDL monies will be contacted by the SBA about how they can request a loan increase.
This announcement comes on the heels of a March 21 announcement that the SBA will extend deferment periods for all disaster loans until 2022, which is certainly a win for borrowers whose first EIDL payments were scheduled for 2021.