SBA to Triple Loan Amounts
SBA to Triple Loan Amounts
Beginning April 6, small businesses and non-profits can apply for up to 24 months of relief, with a maximum loan amount of $500,000, the Small Business Administration announced Wednesday.
The previous limit for such businesses was six months, with a maximum loan amount of $150,000.
“More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses,” SBA Administrator Isabella Casillas Guzman said in a statement. “However, the pandemic has lasted longer than expected, and they need larger loans.”
How to apply
The EIDL program offers businesses 30-year fixed-rate loans that provide capital for normal operating expenses, including health-care benefits, rent, utilities and fixed debt payments, for a certain period. These loans are not forgivable, unlike EIDL Advance loans or money lent through the Paycheck Protection Program.
Eligible small businesses and non-profits can apply for loans through the end of the year and may continue to request additional funds even after the Dec. 31 deadline, according to the SBA.
The SBA to give guidance on topping up loans
There is also good news for borrowers that have already applied or received loans through the SBA program. Some loans approved prior to the week of April 6 will be eligible for an increase based on the new maximum amounts announced Wednesday.
In addition, businesses that previously received loans but would like to be considered under the new guidelines do not have to take any immediate action, the SBA said.
The agency will reach out to those businesses via email closer to the April start date with more information about requesting an increase. Applicants that already accepted a loan calculated under the previous guidelines have up to two years after the date of issuance to ask for additional funding, according to the SBA.
The EIDL program has approved about 3.75 million loans worth a total of more than $200 billion through March 18, according to the SBA. Nearly 80% of those loans are for less than $100,000.
The move to send more loan money to struggling small businesses comes as the Senate prepares to vote on extending the Paycheck Protection Program through May 31 instead of ending it on March 31.
Pop-up Stores Offer Many Options and Benefits By Jill Brooke Everyone finds their aha moment in unexpected places, and for Brenda LaManna, founder and president of Damselfly Flowers, which is headquartered in White Plains, N.Y., and currently has seven...
Learn how to maximize your sales by upselling; your customers (and your bottom line) will be glad you did. By Andrew Joseph A customer has the flowers in hand and is happy with what he or she has. And so are you. But wouldn’t it be great if there was a way to...
Retailers can incur costly penalties for violating the overtime regulations of the Fair Labor Standards Act (FLSA). Here’s what you need to know about wage-and-hour regulations, to keep your business safe from prosecution. By Phillip M. Perry Wage-and-hour law has...