The U.S. Small Business Administration (SBA) has announced plans to increase the amount small businesses and nonprofits can borrow through the COVID-19 Economic Injury Disaster Loan (EIDL) program.
Small businesses and nonprofits will be able to apply for up to $500,000 for 24 months of economic injury, starting the week of April 6. This is a significant increase from the previous loan limit of $150,000 for six months of economic injury.
New loan applications and loans in process will automatically be considered for loans covering 24 months of economic injury once the new loan limits go into effect on April 6.
According to SBA administrator Isabella Casillas Guzman, more than 3.7 million businesses in the United States have received Economic Disaster Loans. Increasing the loan amount, she said, is designed to increase assistance to small businesses that require larger loans.
SBA Arkansas District Director said that 20,231 Arkansas businesses had received more than $1.05 billion in Economic Injury Disaster Loan assistance as of Feb. 16.
The SBA is also extending the deferment period for all economic disaster loans until 2022.