SBA Raises Disaster Loan Limits

Schneider Downs continues to track the evolving landscape of federal financial programs offered in the wake of the business disruption caused by the COVID-19 pandemic.  The U.S. Small Business Administration (“SBA”) is more than tripling the maximum amount that small businesses and nonprofit organizations can borrow under the COVID-19 Economic Injury Disaster Loan (“EIDL”) program.

Starting the week of April 6, 2021, the loan limit will increase from six months of economic injury and a maximum loan amount of $150,000 to 24 months of economic injury and a maximum loan amount of $500,000.

Any COVID-19 EIDL applications in process as of April 6 will be considered for the new maximum limits.  Businesses that already received a smaller EIDL will not need to resubmit a request for increase.  The SBA will provide updated instructions on how to request a loan increase on its website and will reach out directly to existing COVID-19 EIDL borrowers.

COVID-19 EIDLs have a 30-year maturity with interest rates of 3.75% for small business and 2.75% for nonprofits.

This announcement of increased loan limits follows the SBA’s March 12 announcement that it was extending deferment periods for COVID-19 EIDLs.  For COVID-19 EIDLs made in 2020, the first payment due date is 24 months, extended from 12 months, from the date of the loan.  For loans made in 2021, payments would start 18 months, extended from 12 months, after the loan is made.

For more information on COVID-19 EIDLs, visit the SBA website at: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan#section-header-5

If you need more information or assistance with COVID-19 EIDLs or Paycheck Protection Program (“PPP”) loans, visit our website at www.schneiderdowns.com/ppp, reach out to any of your contacts at Schneider Downs or contact Joel Rosenthal at [email protected].

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2021 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
The American Families Plan – Proposed $1.8 Trillion Spending and Tax Plan
The Restaurant Revitalization Fund – Part II
Contractors’ Expectations Continue to Rise
FTC Issues COVID-19 Vaccine Scam Alert
Higher Education Implications Under a Biden Administration
SBA Raises Disaster Loan Limits
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

[email protected]
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

[email protected]
p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102

[email protected]
p:571.380.9003