SBA is set to triple loan amounts for those hit by Covid
A small business owner in Chinatown, San Francisco
Starting 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 these companies was six months, with a maximum loan amount of $ 150,000.
“More than 3.7 million businesses employing more than 20 million people have found financial assistance through SBA Economic Disaster Loans, which provide low-interest emergency working capital to help save 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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The EIDL program provides businesses with 30-year fixed rate loans that provide capital for normal operating expenses, including health care benefits, rent, utilities, and fixed debt payments, for a period of time. certain period. These loans are non-repayable, unlike EIDL Advance loans or money loaned under the Paycheck Protection Program.
Qualifying small businesses and nonprofits can apply for loans until the end of the year and can continue to apply for additional funds even after the Dec.31 deadline, according to the SBA.
SBA will advise on loan renewals
There is also good news for borrowers who have already applied for or received loans under the SBA program. Certain loans approved before the week of April 6 will be eligible for an increase based on the new maximum amounts announced on Wednesday.
Additionally, companies that have already received loans but would like to be considered under the new guidelines do not need to take immediate action, the SBA said.