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Beginning April 6, 2021, the U.S. Small Business Administration (SBA) is expanding its Economic Injury and Disaster Loan (EIDL) program, the organization announced in a press release. Small businesses who originally took out an EIDL loan for up to $150,000 for six months can extend that loan for up to 24 months and receive additional funds for a total of $500,000 in relief.
Our Clients Are Now Getting Approved for the EIDL Increased Loan Limits of $500,000
Have you applied for the SBA’s Economic Injury Disaster Loan (EIDL) increase? Our clients are not getting approved for increased loan limits of $500,000.
Be sure to take advantage of this as it’s a great working capital product for small businesses! Your business can potentially qualify for a term loan of up to $500K @ 3.75% for 30 years. It is paid monthly and no payments are due the first year.
The EIDL is a hot topic on every one of my calls.
If you haven’t applied for it, you should. If you were approved and then declined the loan, then you should consider reapplying. Have questions? We can help you understand the process.
Is Your Business Eligible?
Is your business eligible for the loan increase? See if you qualify by reviewing the criteria below:
- A personal credit score of 570 or higher is necessary
- Sole Prop, Corporations, LLC, Contractors or 1099
- MUST have a 2019 Tax Return
The SBA also announced extending deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to offer more time for businesses to rebuild. To shift all EIDL payments to 2022, SBA will extend the first payment due date for disaster loans made in 2020 to 24-months from the date of the note and 18-months from the note for all loans made in the calendar year 2021.
For more specialized tips tailored to you, contact us at Palma Financial. With over 20 years of experience, we have the knowledge and expertise to guide you in all parts of your financial journey. Contact us by phone or online or schedule your initial consultation here. We look forward to serving you!