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December 21, 2023 
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0 comments SBA EIDL Loan Increase Limit to $500,000 Starting April 6, 2021
The SBA announced that they are increasing the EIDL Loan Limit to $500,000 from the current EIDL Loan limit of $150,000. This new SBA EIDL Loan amount limit will allow businesses to receive additional financial help during this Covid-19 pandemic.
DISCLAIMER
This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. are providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.
The News Release from the SBA on March 24, 2021, read as follows:
“SBA to Increase Lending Limit for COVID-19 Economic Injury Disaster Loans
The U.S. Small Business Administration is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, 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. However, 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 is why I’m proud to more than triple the amount of funding they can access,” said SBA Administrator Isabella Casillas Guzman.
Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time. 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 the 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.
This new relief builds on SBA’s previous March 12, 2021 announcement that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs until 2022 to offer more time for businesses to build back. In order to shift all EIDL payments to 2022 to offer more time for businesses to build back. 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.”
How to Apply for an EIDL Loan Increase
The U.S. Small Business Administration (SBA) offers COVID-19 Economic Injury Disaster Loans (EIDL) to help small businesses recover from the economic impact of the pandemic. The SBA recently announced an EIDL loan increase, giving eligible businesses the opportunity to request an increase in loan amount up to 24 months of economic injury with a maximum loan cap.
The loan increase is available to businesses with EIDL loans made in 2020 and 2021. Unfortunately, the SBA is no longer accepting new applications or processing COVID-19 EIDL loan increase requests. However, businesses already with an EIDL loan can submit a request for an increase until the funds are exhausted, which is expected to be mid-April 2022. To apply, businesses must include their loan or application number, business name, and email address in the body of the email with the subject line: “Request for EIDL Loan Increase”.
Eidl Loan Refresher
As a Loan Officer, I am here to provide a refresher on the terms of the COVID-19 Economic Injury Disaster Loan (EIDL) program. Applicants may be eligible for a maximum loan amount of up to $150,000 to help small businesses recover from the economic injury caused by the pandemic.
The SBA is no longer processing new EIDL loan applications or requests for loan increase. However, they are still accepting requests for reconsideration of previously declined loan applications. The deferment period for loans made in 2020 will end on May 6, 2021, after which interest will accrue.
Eidl Loan Terms
For business owners looking to take advantage of the COVID-19 Economic Injury Disaster Loan (EIDL) program, understanding the loan terms is essential. The SBA EIDL loan program offers loans of up to $2 million with a fixed interest rate of 3.75% for businesses and 2.75% for private nonprofit organizations. Loan repayment will begin after the first payment due date, which is deferred for up to four months. Loan terms are up to 30 years depending on the amount of the loan and the applicant’s ability to repay.
The EIDL portal is available on the SBA.gov website and is where applicants can submit a request for a loan increase or a request for reconsideration of a previously declined loan application. Additionally, the MySBA Loan Portal is available for applicants to monitor loan status, EIDL increase requests or requests for reconsideration, and EIDL loan details.
EIDL Loan Increase and Program Updates
The COVID-19 Economic Injury Disaster Loan (EIDL) program has recently experienced an increase in loan limits and added updates to the eligibility requirements. The maximum eligible loan amount has increased from $500,000 to $2 million, allowing small business owners to receive additional working capital.
This update enables small businesses to pay for regular debt payments, including federal debt, as well as prepayment of commercial debt. Furthermore, the SBA has simplified the affiliation requirements, now considering any business you have a 50 percent or greater ownership in to be an affiliate business.
To apply for the increased loan amount or take advantage of the program updates, you must submit a request via email to the SBA Disaster Customer Service Center. Your email subject line should include your loan or application number. If you have previously declined loan applications due to lack of available funding, you may also submit a request for reconsideration of the loan you have already applied for.
The SBA is no longer processing COVID-19 EIDL Loan Increase Requests or requests for reconsideration of previously declined loan applications via the COVID-19 EIDL Portal.
In addition to the loan increases, the SBA is also offering targeted EIDL Assistance to small business owners in industries most affected by the pandemic.
Who Should Apply for a Loan Increase?
Understanding your maximum eligible loan amount is an important step in the COVID-19 EIDL program. To apply for an increase, one must share sensitive information such as business debt, loan eligibility, and the loans made in the calendar year 2021.
To access the Rapid Portal and submit a new loan application, customers must contact the COVID-19 EIDL Customer Service at 833-853-5638. Furthermore, customers may email the Small Business Administration (SBA) to request an increase of their EIDL funds.
Understanding Your Maximum Eligible Loan Amount
If your business sustained economic injury due to the COVID-19 pandemic and the declared disaster, you may be eligible for an increase in your existing EIDL loan. To be considered for a loan increase, you must have an existing EIDL loan number and submit your request via email to the SBA’s COVID-19 EIDL Customer Service at 833-853-5638.
In the body of the email, include your loan or application number; your business name; and the amount you are requesting. In the subject line, write “EIDL Increase Request” and the loan or application number. The SBA is no longer accepting applications for new EIDL loans, and they are no longer processing COVID-19 EIDL loan increase requests or requests for reconsideration of previously declined loan applications due to lack of available funding.
How to Apply for an Eidl Loan Increase
Transitioning from who should apply for a loan increase, it is important to understand how to apply for an EIDL loan increase. The SBA is offering targeted EIDL advances to help small businesses recover from the economic injury caused by the pandemic. Businesses with existing loans may be eligible for an increased loan amount up to the maximum eligible loan amount to cover 24 months of economic injury with a maximum loan cap of $500,000.
To apply for an EIDL loan increase, simply log in to your SBA EIDL portal account and select “Request More Funds” under the Status section of your dashboard. Answer the questions in the portal, submit any required documents, and enter your requested loan increase amount.
Keep in mind that the SBA is no longer processing COVID-19 EIDL loan increase requests or requests for reconsideration of previously declined loan applications. Also, the SBA is no longer accepting new applications for the COVID-19 Economic Injury Disaster Loan program. If you need assistance, you can contact the COVID-19 EIDL Customer Service at 833-853-5638.
How to Apply for an Increase Through Email
The COVID-19 Economic Injury Disaster Loan (EIDL) Program is designed to help small businesses recover from the economic impacts of the pandemic. If your business has already received an EIDL loan, you may be eligible for additional funding. However, the SBA is no longer accepting new applications and has stopped processing requests for loan increases.
Fortunately, the SBA has established a new portal to help small businesses seek additional funds. To request more funds, you must first log in to your MySBA loan portal. If you don’t see the “Request More Funds” button, you can also request an increase by emailing the SBA. Be sure to include your loan or application number in the subject line, and include your business name, address, business owner name(s), phone number, and application number in the body of the email.
You may be eligible for a loan increase up to the maximum eligible loan amount of 24 months of economic injury with a maximum loan of $500,000. Interest will accrue from the date of the loan and the first payment will be due 6 months after the loan is made. All loans made in 2021 have a maximum loan cap of $150,000.
How to Apply for a New Loan
Applying for a new loan is an important decision for businesses. The Covid-19 Economic Injury Disaster Loan (EIDL) offers a financial lifeline for businesses impacted by the pandemic. To apply for an EIDL loan, businesses must provide documents and meet certain requirements.
For loans greater than $500,000, additional documents may be required. After applying, businesses should be prepared for a wait time. SBA will email an application number and instructions on how to monitor the loan status through the SBA website or the EIDL portal.
Required Eidl Loan Documents
Applying for an Economic Injury Disaster Loan (EIDL) requires certain documents to be submitted to the Small Business Administration (SBA). While the application process is straightforward, it is important to submit all the necessary documents to ensure that your loan is approved.
To confirm your federal income taxes, you must submit your Federal income taxes, IRS Form 4506-T (Request for Transcript of Tax Return), and ODA Form P-022 Standard Resolution. If you have previously submitted IRS Form 4506-T for another loan program, you need to file a new one for the EIDL.
For loans of $500,000 or higher, additional documents are required. You must submit SBA Form 2202 – Schedule of Liabilities, SBA Form 413 – Personal Financial Statement, and a list of the real estate you own using the intake form template. The SBA may request additional forms during the application process, so it is important to check the SBA portal and email accounts.
Requirements for Loans Greater than $500,000
Transitioning from applying for a loan increase through email to a new loan, it is important to understand the requirements for loans greater than $500,000. The Small Business Administration (SBA) will conduct a cash flow analysis to determine the eligible amount. Business owners who apply for a loan of this size must have a minimum credit score of 570 and provide additional documentation, such as SBA Form 2202 – Schedule of Liabilities and SBA Form 413 – Personal Financial Statement.
Additionally, they must provide a list of their real estate holdings. The SBA may also request additional forms during the process. As such, applicants must regularly check their SBA portal and email accounts for updates. With the right information and documents, the loan application process can be completed in an hour.
What to Expect After You Apply
Once you have submitted your EIDL application, the SBA will review your documents and provide an application number and loan status. Generally, it takes a few days to a couple of weeks for the SBA to review your application and come to a decision.
If your loan is approved, you’ll receive an email from the SBA with details about your loan. This will include the loan amounts, interest rate, loan term, and your first payment due date. Keep in mind that interest will accrue from the date of disbursement.
If your loan is declined, you have the right to request a reconsideration of your previously declined loan application due to lack of available funding. You can submit a request for reconsideration by emailing the SBA.
Conclusion
The Economic Injury Disaster Loan (EIDL) program has been helping small businesses recover from the economic impact of the COVID-19 pandemic. Business owners who have already received a loan may apply for an increase by emailing the Small Business Administration (SBA).
Additionally, those who have been declined for a loan may submit a request for reconsideration. Lastly, the SBA is now accepting new applications with loan limits and deferment periods. All of these measures are helping businesses recover and reduce the burden of business debt during these challenging times.
Transcript
The SBA has just announced that they are increasing the lending limit on the covet 19 SBA EIDL loan from the max was $150,000, now the max is going to be $500,000 that’s what we’re going to talk about in this video.
Hello from Freedom Tax Accounting we’re an accounting firm, where we have been providing quality tax and accounting services now for over 20 years. If you are new to this channel, we provide strategies for small business owners so they can achieve their financial goals. Although for the past couple of months we have been concentrating on providing information on the PPP and EIDL loan programs and any other help that is available for small businesses during this coronavirus pandemic. Now we are recording this video on March 24th and we always emphasize the date on the recording on any video relating to the PPP idol, because these programs are constantly changing so there may be things we discussed in this video that can change as soon as tomorrow. So, that’s the importance of subscribing to our channel that way you’re always up to date with the most current and correct information regarding these loans.
So, what did the SBA announce today? Let me show you. This is hot off the press. This is the latest news release from the SBA where they are basically saying that they are going to “increase the lending limit for coveting 19 economic injury disaster loans”. Okay, what loan is this one? This is the SBA EIDL loan okay. Remember that the loan limit on the EIDL loan used to be $150,000, but now they are going to increase the limit to $500,000 okay. Now according to the SBA, this is starting the week of April 6th. So, people who apply for the EIDL loan starting the week of April 6th, are going to be subject to the new rules.
Now, remember that the EIDL loan program has been extended till the end of 2021. So, if you have not applied for an EIDL loan yet in 2020 or now, I would recommend waiting until the week of April 6 because now you can get more okay. Now obviously the question is what happens to all the small businesses who already applied for the EIDL loan, and they want to increase their EIDL loan based on the new formula. Because the formula in the past was that the SBA gave you six months of economic injury alone, but now they are extending it for 24 months of economic injury funds okay. So, that means that if you got an EIDL alone, even if it wasn’t $150,000, you may now apply for an increase. But the SBA says over here it is, the 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. So, basically, if you already got an EIDL loan, you basically now have to wait for the SBA, because they are going to basically provide further guidance closer to the April 6 date on how it is going to be the method of requesting an increase okay. So, we just wanted to provide this information to you so now we just have to wait until the week of April 6th, to see how small businesses can apply for the EIDL loan increase okay.
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