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SBA relief loan amounts, terms change

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The U.S. Small Business Administration is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program.

According to an SBA news release, the SBA is changing the criteria for the COVID-19 EIDL program starting April 6 so that businesses can receive up to $500,000 to cover 24 months of economic injury. Right now, the maximum loan amount is $150,000 to cover six months of economic injury.

Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time. 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. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic injury up to a maximum of $500,000.

On March 12, the SBA announced that it would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to offer more time for businesses to recover. To shift all EIDL payments to 2022, SBA will extend the first payment due date for disaster loans made in 2020 to 24 months from the date of the note and to 18 months from the date of the note for all loans made in the calendar year 2021.

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