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Financial Services Law Insights and Observations

SBA increases lending limit for Covid-19 EIDL program

Federal Issues SBA Covid-19 Small Business Lending EIDL

Federal Issues

On March 24, the Small Business Administration (SBA) announced that the maximum amount small businesses and non-profit organizations can borrow through its Covid-19 Economic Injury Disaster Loan (EIDL) program will increase beginning the week of April 6. According to the announcement, SBA will raise the loan limit for Covid-19 disaster loans “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.” New loan applications, as well as loans-in-process when the increase takes effect “will automatically be considered” for the new maximum loan limit. This change follows SBA’s announcement earlier this month, which extended the deferment period for all disaster loans, including Covid-19 EIDLs, until 2022 (covered by InfoBytes here).

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