Small businesses have suffered disproportionately from COVID-19’s economic fallout – but more help is here.
This week, the Small Business Administration (SBA) announced an increase in the maximum amount that small businesses can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Specifically, the SBA is raising the loan limit from 6-months of injury with a maximum loan of $150,000 to up to 24-months of injury with a maximum loan of $500,000. This means that small businesses can receive favorable loans that really reflect the economic impact of the past year.
And more good news: Congress just passed legislation extending the deadline for Paycheck Protection Program (PPP) applications until May 31st. If the PPP program had expired, over 100,000 small businesses and eligible nonprofits with pending applications would have lost out on these vitally needed loans which have been a lifeline for the past year.
89% of America’s businesses have fewer than 20 employees. Our collective economic recovery hinges on the success and survival of our small businesses -- and with these changes, the future looks brighter for the small businesses that make up the backbone of our communities and our nation’s economy. For more information about these programs and how to access them, visit SBA.gov or contact my office.