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SBA Likely to Increase COVID EIDL Limit to $2 Million

  • U.S. Small Business Administration likely to increase limit on COVID EIDL loans to $2 million
  • Program, established as an extension of an existing disaster relief lending option, currently has a limit of $500,000 per loan
  • SBA could also modify program to allow funds to be used for a greater range of expenses

Summary by Dirk Langeveld

Business owners will likely be able to borrow considerably more money under a federal COVID-19 emergency loan program, according to

The site reports that the U.S. Small Business Administration is expected to increase the cap on its COVID Economic Injury Disaster Loan program to $2 million. This would bring the program in line with the terms of the traditional EIDL loans, which are available to businesses recovering from hurricanes and other disaster-related disruptions.

The COVID EIDL program was established to expand the traditional program to all small businesses affected by the COVID-19 pandemic. It previously limited loans to $150,000, but the cap was increased to $500,000 in March.

  • The updated program could also expand how funds could be used, including paying down or refinancing debts
  • The SBA has committed to increasing the loan limit again, including the promise of a new EIDL application, but updates have been delayed
  • The hospitality sector has been particularly vocal in advocating for a COVID EIDL loan limit increase
  • SBA Administrator Isabella Casillas Guzman recently urged businesses to take advantage of the COVID EIDL program, saying billions of dollars remain available
  • Congress has appropriated $367.1 billion for COVID EIDL loans, and the program expires Dec. 31
  • As of Sept. 2, the program has approved 3.83 million loans totaling $262.7 billion, including $2.82 billion to 37,101 Connecticut businesses

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