New Economic Injury Disaster Loans (EIDL) maximum amount is four times the previous limit, highest allowed under current law
Washington, D.C. – The Small Business Administration (SBA) has raised the maximum loan amount small businesses can access for COVID-19 Economic Injury Disaster Loans (EIDL) to $2 million. The move comes after urging from Senator John Hickenlooper and represents a four-fold increase in the amount a business can access.
Small business owners can click HERE for more information on the EIDL program and instructions on how to apply.
“An arbitrarily low cap hampered our ability to help small businesses,” said Hickenlooper. “Access to capital is everything, so we’re urging SBA to speed approvals and keep small businesses afloat.”
In April, the SBA raised the cap from $150,000 to $500,000, which Hickenlooper applauded while continuing his call for a $2 million cap, the maximum allowed under current law.
The Trump administration had set an arbitrarily low cap, and Hickenlooper earlier this year pressed the new administration to allow small businesses to borrow up to the program’s full potential.
The new cap will allow small businesses to receive loans of up to $2 million and comes with a 24 month deferment period for repayment. EIDL funds can be used for operating expenses including payroll, purchasing equipment, and paying debts.