The U.S. Small Business Association announced Thursday new changes to the Economic Injury Disaster Loan program for companies impacted by the COVID-19 pandemic.
The federal disaster relief loan was designed to serve and support small business communities impacted by the pandemic, according to the release.
One of the most major upgrades to the program is lifting the loan cap which will increase available loan funds for small businesses from $500,000 to $2 million.
The new enhancements offer a deferred payment period of two years and flexibility to allow borrowers to pay down higher-interest business debt. Interest will accrue during the deferment period.
“Our mission-driven SBA team has been working around the clock to make the loan review process as user-friendly as possible to ensure every entrepreneur who needs help can get the capital they need to reopen, recover and rebuild,” said SBA administrator Isabella Casillas Guzman in a statement.
The SBA has streamlined the loan application process to promote accessibility, which has raised the daily processing of loans from 2,000 applications a day to 37,000 applications, according to the release.
Small businesses who are eligible for the program and need loan assistance can submit their applications at www.sba.gov/eidl. The deadline for loan applications is Dec. 31.
