On March 24, the U.S. Small Business Administration (SBA) announced that effective April 6, 2021, the maximum COVID-19 EIDL program loan amount will be increased to $500,000. Previous loan amounts were capped at $150,000.

The loans, which are intended to support certain working capital needs, carry a 3.75% interest rate for businesses or a 2.75% rate for nonprofit organizations with a maturity of up to 30 years. Borrowers are not required to make payments until 2022; however, interest will accrue during this time, so some borrowers may wish to make payments during the deferment period.

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 of $150,000 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.

To learn more about the COVID-19 EIDL program, please visit the SBA website.

If you have questions about the EIDL program, or other COVID-19 relief options, please don't hesitate to contact us for assistance.