SBA Raises COVID-19 EIDL Loan Limit to $500,000

March 25, 2021

The U.S. Small Business Administration (SBA) has announced that beginning the week of April 6, it is raising the limit small businesses and nonprofits can borrow under the COVID-19 Economic Injury Disaster Loans (EIDL) program to up to 24 months of economic injury with a maximum loan amount of $500,000.

The previous COVID-19 EIDL loan limit was six months of economic injury with a maximum loan amount of $150,000. According to the SBA, more than 3.7 million businesses employing more than 20 million people have found financial relief through the program thus far, but due to the unexpected length of the pandemic businesses now need larger loans.

The SBA stated that any COVID-19 EIDL loans in process when the new limits go into effect will automatically be considered for the new maximum limits. Existing COVID-19 EIDL borrowers will be able to request an increase beginning April 6. The SBA will provide updated instructions on how to request a loan increase on SBA.gov and will reach out directly via email to existing COVID-19 borrowers with loans approved prior to the increased loan limit taking effect.

The SBA has so far approved more than $200 billion in COVID-19 EIDL loans. The loans have a 30-year maturity with interest rates of 3.75 percent for small businesses, including sole proprietors and independent contractors, and 2.75 percent for nonprofits.

The announcement of the higher loan limits followed the SBA’s March 12 announcement that it was extending deferment periods for all disaster loans, including COVID-19 EIDL loans, until 2022.