SAN FRANCISCO, CA / ACCESSWIRE / November 19, 2021 / The Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) maximum amounts have changed numerous times since the inception of the popular COVID loan program in March of 2020. From the original $2 million, it was quickly reduced to $150,000 when millions of business owners were applying in droves. This past year it was raised to $500,000. Now, as of September 2021, it is restored back to the original $2 million maximum for those small businesses that qualify for this size EIDL loan.
Excited business owner receiving news of being approved for a $2 million SBA EIDL disaster loan. Image Credit: 123rf / Fizkes.
"For those small businesses and companies who have initially received 1st round EIDL funds, many do not realize you can do a loan modification or increase request for upwards of the current $2 million maximum," said Marty Stewart, Chief Strategy Officer for Disaster Loan Advisors (DLA).
DLA is a strategic advisory firm that specializes in assisting small businesses and companies with SBA loan consulting for SBA EIDL loan increase requests and modifications, as well as EIDL loan reconsideration requests for those who have been denied.
"When asking for the full $2 million, you really need to be strategic about laying out your case to get an approval from the SBA for this amount. This is done in the form of an extensive Increase Request letter to the SBA. Sending a simple email won't cut it when you are asking for $2 million," continued Stewart.
When Did the SBA Increase the EIDL Loan Program Back to the Original $2 Million?
In September 2021, SBA Administrator Isabella Casillas Guzman announced major enhancements to the COVID Economic Injury Disaster Loan (EIDL) program.
Key changes announced by the SBA included increasing the COVID EIDL cap. The SBA lifted the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.
Types of Small Businesses Eligible for the Economic Injury Disaster Loan (EIDL) SBA Program
According to official SBA requirements, eligibility is based on size and other requirements. Businesses must meet these SBA COVID EIDL size standards to be considered for the program.
Businesses that qualify are:
A business that, together with affiliates, has not more than 500 employees;
An agricultural enterprise that, together with affiliates, has not more than 500 employees;
An individual who operates as a sole proprietorship, with or without employees, or as an independent contractor and, together with affiliates, has not more than 500 employees;
A cooperative that, together with affiliates, has not more than 500 employees;
A tribal small business concern, as described in 15 U.S.C. 657 a(b)(2)(C), with not more than 500 employees;
A business, including an agricultural cooperative, aquaculture enterprise, nursery, or producer cooperative (but excluding all other agricultural enterprises), with more than 500 employees, that is small under SBA Size Standards.
Confusion Over When the SBA EIDL Program Ends
For small businesses with less than 500 employees, entrepreneurs, solopreneurs, or sole proprietors who have not yet applied for the COVID-19 EIDL program, the deadline is December 31, 2021 (12/31/21) to get an initial application in.
For all other small businesses that have received first round EIDL funds, have been denied an EIDL, or want to do an increase request / loan modification to access more EIDL funds, the true deadline is when the COVID EIDL funds run out.
"There has definitely been confusion over what that December 31st deadline really means. For those wanting to do an EIDL increase, or even an EIDL reconsideration, the SBA will still be processing these requests well into Q1 and Q2 of 2022. The key is to get in line with your request now before funds really do run out," said Stewart.
About Disaster Loan Advisors™
Disaster Loan Advisors™ is a trusted team of professionals dedicated to saving small businesses and companies from lost sales, lost customers, lost revenue and rescuing your business from potential financial ruin from this COVID-19 / Coronavirus disaster, and the recent Hurricane Ida 2021 declared disaster.
Has Your Small Business or Company Suffered Financial Loss due to COVID, Hurricane Ida, or Other Natural Disaster? Was Your SBA Loan Application Denied for an EIDL Loan? Are You Looking for an Increase to Your Existing SBA EIDL Loan (up to $2 Million)? Need Strategic Guidance Before You Make Your Next Move?
Disaster Loan Advisors
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SOURCE: Disaster Loan Advisors
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