We’ve gotten 2 big announcements from the SBA regarding Economic Injury Disaster Loans (EIDL).
First, instead of waiting 12 months to start making payments, you now can wait 18-24 months. If your loan was made in 2020, you have 24 months. If your loan was made in 2021, you can wait 18 months. For the most part, loans will start 2022 – 2023.
Second, the SBA has increased the maximum amount businesses can borrow through the EIDL program. Prior to this increase, the loan limit was 6 months of economic injury with a maximum injury of $150,000. Now the amount is 24 months of economic injury up to $500,000.
In both cases, you do not need to contact the SBA regarding the payment plan or a possible increase of your loan amount. The SBA will contact you with instructions of who to contact via email. You’ll need to provide your application number, account number, business name, address and contact info, along with a statement that you want to increase your loan amount.
You don’t need to respond to the SBA right away. If you previously received an EIDL, you have up to 2 years from the date of initial issuance to apply for additional funding.
Does it make sense to get the loan? My two cents… it’s cheap money (3.75%) with a long payback period (30 years). I don’t know anyway you could get that kind of loan for your business without the SBA’s help. If you qualify, take the money.
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