The Small Business Administration (SBA) announced enhancements to the COVID-19 Economic Injury Disaster Loan (EIDL) program, which include:
Beginning October 8, the EIDL borrowing limit will be increased to $2 million from the current maximum lending amount of $500,000, with 24 months of deferment.
Until October 8, the agency will offer a window of exclusivity for businesses applying for loans for under $500,000.
The EIDL program was designed to help small business owners and nonprofit organizations meet financial obligations and operating expenses that could have been met had the pandemic not occurred. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.