The Small Business Administration will triple loan amounts for Covid-damaged companies
A small business owner in Chinatown, San Francisco
Beginning April 6, small businesses and nonprofits can apply for up to 24 months of relief with a maximum loan amount of $ 500,000, the Small Business Administration said on Wednesday.
The previous limit for such companies was six months with a maximum loan amount of $ 150,000.
“More than 3.7 million businesses with more than 20 million employees have found financial relief through the SBA Economic Injury Loans, which provide low-interest emergency working capital to rescue their businesses,” SBA Administrator Isabella Casillas Guzman said in a statement. “However, the pandemic has lasted longer than expected and they need bigger loans.”
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How do I apply?
The EIDL program offers companies 30-year fixed income loans that provide capital for normal operating expenses, including healthcare benefits, rent, utilities, and fixed debt, for a period of time. These loans, unlike EIDL Advance loans or funds lent through the Paycheck Protection Program, are not forgivable.
Eligible small businesses and nonprofits can apply for loans until the end of the year and, according to the SBA, apply for additional funds even after the December 31 deadline.
The SBA is intended to provide guidelines for topping up loans
There is also good news for borrowers who have already applied for or received loans through the SBA program. Some loans approved before the week of April 6th may be increased based on the new maximum amounts announced on Wednesday.
Additionally, companies that have previously received credit but want to be considered under the new guidelines don’t need to take immediate action, the SBA said.