Small businesses that have been impacted by the pandemic will now be able to apply for up to 24 months of relief totaling $500,000. Previously, the Small Business Administration limited the relief to six months worth $150,000.
SBA administrator Isabella Casillas Guzman said the decision came down to the pandemic extending longer than authorities originally planned for or hoped.
“More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses,” Guzman told CNBC in a statement. “However, the pandemic has lasted longer than expected, and they need larger loans.”
Eligible businesses can apply for the increased amount starting April 6. They can apply for loans through the end of the year, and can continue to request additional money after the Dec. 31 deadline, the SBA told CNBC.
The 30-year fixed-rate loans provide financial cover for business expenses such as rent, utility bills and employee health care benefits, and are not forgivable, unlike the EIDL Advance loans or loans through the Paycheck Protection Program.
If businesses already applied for or received a loan through the EIDL program, they may still be eligible for an increase. The SBA will also start to reach out to businesses that previously received loans with information about requesting an increase. Any business owner that accepted a loan before this increase will have two years after the issue date to request more.
