The #SBA is significantly increasing the max loan size for EIDL (COVID disaster) loans. That's great news for struggling #SmallBusiness. Find out what's happening and when in 30 seconds here. @asicentral @ASI_MBell @Tim_Andrews_ASI @TheresaHegel @Melissa_ASI pic.twitter.com/aQ35wCnNH1

— Chris Ruvo (@ChrisR_ASI) March 26, 2021

Small businesses in the promotional products industry and beyond that need financial support amid the ongoing economic fallout from the COVID-19 pandemic may be in luck.

The U.S. Small Business Administration announced Wednesday, March 24, that it’s more than tripling the maximum amount small businesses and nonprofit organizations can borrow through its COVID Economic Injury Disaster Loan program.

Starting the week of April 6, the SBA is raising the loan limit for the COVID-19 EIDL program from 6 months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000.

“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,” said SBA Administrator Isabella Casillas Guzman.

“However,” Guzman continued, “the pandemic has lasted longer than expected, and they need larger loans. Many have called on SBA to remove the $150,000 cap. We are here to help our small businesses and that’s why I’m proud to more than triple the amount of funding they can access.”

This potential to obtain a larger loan comes on the heels of the SBA’s March 12 announcement that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022. In order to shift all EIDL payments to 2022, SBA will extend the first payment due date for disaster loans made in 2020 to 24 months from the date of the note and to 18 months from the date of the note for all loans made in the calendar year 2021.

“Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time,” the SBA said in an announcement. “SBA will reach out directly via email and provide more details about how businesses can request an increase closer to the April 6 implementation date. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic injury up to a maximum of $500,000.”

Questions about SBA COVID-19 EIDL and disaster loan payments can be emailed to DisasterCustomerService@sba.gov or directed to SBA’s Customer Service Center at
1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).