Read more at SBA.gov
The United States Small Business Administration announced that it will allow deferred payments from businesses that received loans as part of the COVID-19 EIDL program. The SBA will also be increasing the maximum amount that small businesses or non-profits can borrow ranging from a 6-month to 24-month loan period and amounts of $150,000 – $500,000.
Businesses will be instructed on how to request an increase closer to the April 6 implementation date.
The EIDL is a low-interest, fixed-rate loan that can provide up to $2 million in assistance for a small business. SBA’s Economic Injury Disaster Loan (EIDLs) funds come directly from the U.S. Treasury. Applicants do not go through a bank to apply, and instead, apply directly to SBA’s Disaster Assistance Program.
The new relief stems from the previous announcement made on March 12, 2021 stating that the agency would extend time-periods for all the disaster loans until 2022 in order to give the businesses more time to build up from the economic chaos.