We have good news for our business clients. The Small Business Administration (SBA) has increased the loan limits for the COVID-19 Economic Injury Disaster Loan (EIDL) program, which means you may be eligible to receive additional loan funds for up to 24 months of economic injury with a maximum loan amount of $500,000.
For loan amounts over $25,000, SBA will continue to take a security interest in business assets evidenced by a general security agreement and UCC filing. SBA will also require an unsecured personal guarantee for loan amounts over $200,000 from any individual with 20 percent or more ownership. Real estate collateral will not be required for any loans of $500,000 or less.
The first payment due date for all loans are also extended until 2022. For COVID-19 EIDL loans made in calendar year 2020 and 2021, the first payment due date is extended until 24 and 18 months from the date of the note respectively. Loan interest will continue to accrue during the deferment period, and a loan increase will not further extend the first payment due date.
Requests will be processed in the order they are received. Due to the expected high volume of incoming requests, it may be several weeks before you receive a response from SBA on next steps to follow. Please make sure to submit your request as soon as possible.