EIDL Update: How To Request EIDL Increase
The SBA has increased the availability of funds for the Economic Injury Disaster Loan up to $500,000 which is an increase from the $150,000 previous maximum funds available.
The SBA will be sending emails to let previous EIDL borrowers know how to request the increase, however, they are providing a very general set of instructions.
They are letting borrowers know that it’s “first come, first serve” for the increase and warning that the process will take some time.
Do not apply at the SBA website for the EIDL increase because the only way that you are eligible is if you had previously applied and received the prior EIDL loan. This is an increase for previous borrowers.
Remember, the EIDL is not a forgivable loan as opposed to the PPP Loan. It also did not come about because of the pandemic. The EIDL has always been offered by the SBA for various economic disasters.
Please note that when you are requesting an increase in the EIDL loan, it has nothing to do with the EIDL grant. The SBA will be sending a separate and distinct email for those that qualify for the EIDL grant.
The EIDL loan comes with a 30 year term and a 3.75% interest rate (2.75% interest rate if the business is non-profit).
Just know that if you or your clients are experiencing economic uncertainty, requesting the increase in the loan doesn’t mean you have to take the full amount if offered.
Also, remember that you can only use the EIDL for operating expenses. The loan cannot be used to pay off debt, pay distributions, purchase assets, etc.
You can find out more at www.sba.gov