The Small Business Administration is expected to lift the cap on its Covid Economic Injury Disaster Loans (EIDL) sometime after Labor Day on September 6, bringing the low-interest long term loan available to any small businesses struggling amid the pandemic back up to $2 million.
The cap was set at $500,000 in March 2021, after the SBA spent several months approving only loans of up to $150,000. Traditionally, the EIDL loan program--which has a 30-year maturity date--has a $2 million cap and loan interest terms that range from 2.75 percent for nonprofits to 3.75 percent for businesses.
Despite the promising news, not every business will have access to the expanded funds. The amount for which you qualify now is based on your 2019 total revenue minus your cost of goods sold, less any EIDL already received. Plus, it's not yet clear what the requirements will be regarding whether you have to prove economic injury. You may have to show your 2020 numbers and demonstrate financial loss to get any kind of supplemental EIDL.