Maximum Loan Amount to Increase from $150,000 to $500,000
SBA Working to Increase Limit to $2 Million Maximum Allowed by Statute
SBA Working to Increase Limit to $2 Million Maximum Allowed by Statute
(Washington, DC) — U.S. Senate Committee on Small Business & Entrepreneurship Chair Ben Cardin (D-Md.) today issued a statement after the U.S. Small Business Administration (SBA) announced changes to increase the utility of the Economic Injury Disaster Loan Program (EIDL). Starting the week of April 6, 2021, 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.
During a committee hearing to examine SBA’s implementation of EIDL and other COVID-19 relief programs today, SBA Associate Administrator for the Office of Disaster Assistance James Rivera also announced that SBA Administrator Isabella Casillas Guzman has asked him to create a plan to increase the maximum loan amount to the statutory limit of $2 million “as soon as possible.”
“I applaud Administrator Guzman for taking swift action to increase the maximum loan limit in EIDL to provide immediate relief to small businesses that need additional capital,” Cardin said. “I was very disappointed when the Trump Administration implemented the $150,000 cap last year, so I am grateful that Administrator Guzman is already working to increase the limit to the maximum $2 million allowed by statute. EIDL loans provide affordable, patient capital, which gives small businesses greater flexibility in how to deploy the loan to best serve their needs. Today’s announcement, along with the Biden Administration’s prior decision to extend the deferment period on EIDL loans, will make EIDL an even better resource for struggling small businesses in need of capital.”
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