Small business owners, including gym owners, will soon be able to borrow more relief money through the COVID-19 Economic Injury Disaster Loan (EIDL) program.
Beginning April 6, the U.S. Small Business Administration (SBA) will increase loan limits from 6 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.
SBA administrator Isabella Casillas Guzman notes that more than 3.7 million businesses have received relief through the EIDL program, but more COVID-19 business support is needed. “The pandemic has lasted longer than expected, and they need larger loans,” she said. “Many have called on SBA to remove the $150,000 cap. We are here to help our small businesses and that is why I’m proud to more than triple the amount of funding they can access.”
Gym owners who already received a loan subject to the previous limit will not need to submit a request for an increase. Instead, the SBA will reach out to recipients by email to provide more detail. All new loan applications and loans being processed when the new loan limits are implemented will also be considered for 24-month coverage and up to $500,000 in relief.
This update is in addition to the SBA’s recent announcement that all disaster loan payments, including EIDL, will be deferred until 2022 to allow business owners to recover. The first payment for 2020 loans will be due 24 months after the date of the note, while the first payment for 2021 loans will be due 18 months from the note date.
For more information about the EIDL program, visit the SBA’s website.