The U.S. Small Business Administration (SBA) is increasing the maximum amount small businesses and nonprofits can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program.
Starting the week of April 6, the SBA will raise the loan limit for the EIDL program from six 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.
The pandemic has lasted longer than expected, and businesses need larger loans to save themselves, the SBA explained in a news release.
Businesses that receive a loan subject to the current limits do not currently need to submit a request for an increase. The SBA will reach out directly via email and provide more details about how businesses can request an increase closer to the April 6 implementation date.