SBA Cuts Disaster Loan Max Amount to $150K, Limits New Applications
The Small Business Administration has slashed the maximum loan limit for the Economic Injury Disaster Loan Program by more than 90%. This is separate from the Paycheck Protection Program.
The news comes from Washington Post. It reports that the maximum loan size has been reduced to $150,000. Initially, approved applicants were eligible for up to $2 million in loans with an interest rate of 3.75%, plus a $10,000 grant. The grant amount was previously changed to $1,000 per employee, up to $10,000 total. The SBA has not made an official announcement about the latest change.
Additionally, starting on May 4, the SBA said it would only accept applications from agricultural businesses that were interested in EIDL. All other EIDL loan applications that were submitted before the portal stopped accepting new applications on April 15 will be processed on a first-in, first-out basis.
The Economic Injury Disaster Loan program is designed to help small businesses and nonprofits during disasters. EIDL loans are not forgivable, except for the maximum for grant of $10,000.