SBA Increases Lending Limit for COVID EIDLs
The SBA announced today that it is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 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.
Businesses that received 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. EIDL and EIDL Advance fraud has been an issue since the program was created by the CARES Act last March. Texas bankers need to be aware of the upcoming program change and remain vigilant to identify and report suspicious activity in the COVID-19 EIDL program. The SBA’s July 22, 2020 Information Notice Providing Guidance Regarding Identification and Reporting of Suspicious Activity in the COVID-19 EIDL Loan Program is still in effect and can be found HERE.