SBA Increases Loan Limits for COVID-19 EIDL Program

Filed in Business Management, Disaster Response by on April 7, 2021 81 Comments

The Small Business Administration (SBA) has announced a policy change to help businesses weather the financial hardship brought on by the COVID-19 pandemic by significantly increasing loan limits up to 24 months of economic injury with a maximum loan amount of $500,000.

These loans were previously limited to six months of economic injury up to a maximum of $150,000.

The SBA’s new increased loan limits for the COVID-19 Economic Injury Disaster Loan (EIDL) program are now in effect. For loan amounts over $25,000, SBA will continue to take a security interest in business assets evidenced by a general security agreement and UCC filing. SBA will also require an unsecured personal guarantee for loan amounts over $200,000 from any individual with 20% or more ownership. Real estate collateral will not be required for any loans of $500,000 or less.

SBA announced last month that it is extending the first payment due date for all loans until 2022. For COVID-19 EIDL loans made in calendar year 2020, the first payment due date is extended until 24 months from the date of the note, and for loans made in calendar year 2021 the first payment due date is extended until 18 months from the date of the note.

Loan interest continues to accrue during the deferment period, and a loan increase will not further extend the first payment due date.

Companies that wish to request a loan increase should:

  • Send an email to CovidEIDLIncreaseRequests@sba.gov.
  • Use subject line “EIDL Increase Request for [insert your 10-digit application number]”.
  • Be sure to include in the body of your email identifying information for your current loan including application number, loan number, business name, business address, business owner name(s) and phone number.
  • Do not include any financial documents or tax records with your initial request. SBA will send a follow up email notification if it needs additional documents.

Due to high volume of incoming requests, SBA reports it may be several weeks before a response is received from the agency on the next steps to follow. Those who request a loan increase should not resend multiple requests if they do not hear back right away from the SBA as the extra emails could slow down the overall response time.

If you have any questions regarding the COVID-19 EIDL program, or SBA’s other COVID relief program, please visit SBA’s website at SBA.gov/relief for the most current updates.

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Comments (81)

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  1. Cyrus Giroir says:

    I forgot my first loan account number how do I get it so I can apply for the second one

  2. John Greer says:

    I would like to speak to a rep. About increasing my loan according to the new guidelines

  3. Kiona Daher-Lee says:

    How do I apply for the first one

  4. Melissa Mabry says:

    We received two do documents via email from SBA after our first application both had our application number on them. May want to check your emails

  5. Andres says:

    Can we submit requests for other companies that need a increase?

  6. William Noel says:

    I apply for the loan 3 month ago the guy won’t answer the phone or return my email what can I do

    • NAHB Now says:

      If you already applied and have not heard anything about your application, the SBA asks that you call its Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing) or email DisasterCustomerService@sba.gov to check the status of your application. If you have already applied, you do not need to submit your information again.

  7. Monique Lewis says:

    In July 2020 I received both the EIDL loan funds and advance however, I have yet to receive the email invite for the Targeted Advance. I live in the mid to high income area but I thought it was no longer based on size or location. Should I continue to wait patiently? Maybe call or email the SBA for answers? Also is there an email address specifically for the Targeted Advance?

    Thank you

    • Elizabeth says:

      To my understanding its by email invite only and if you received both the advance and they loan it wouldn’t be expecting a invite email only for the targeted advanced program from what I heard its for businesses that didn’t receive neither advance or grant.then the 2nd phase is going to be for people who got the loan but didn’t get the grant money due to them running out of funds.then 3 phase is supposed to be for new applicants. Thats too my understanding and what I’ve seen so far. Hope it helps.

      • Business Owner says:

        This is not accurate. The loan increase invitation was emailed to those who already applied for an EIDL loan and received a loan…. thus the invitation for an “increase.”
        For first timers, they can apply on the SBA website. They wouldn’t have received an email invitation because the SBA wouldn’t know they existed if they didn’t apply yet. The new limits will be in place for new borrowers.
        The targeted advanced program went to all loan recipients; however, unless your business is in a low income area as defined by Census reporting, you are not eligible. Hope that helps!

    • Heather Brentlinger says:

      I received the advance and the loan . I got the email on Aptil 5th for the targeted advance but they have a map and based on the location(address) of the business is whether you can get the targeted advance or not. I looked up my address and it was not in the correct area so I think you should have still gotten the email whether or not you received the loan and the last advance maybe check your spam.

  8. Lakesha Stevenson says:

    I never got the first one yet what do i do

    • NAHB Now says:

      If you already applied and have not heard anything about your application, the SBA asks that you call its Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing) or email DisasterCustomerService@sba.gov to check the status of your application. If you have already applied, you do not need to submit your information again.

  9. I have been trying to get approved for 8 months and the SBA keeps sending the wrong form to fill out. I have called received the correct form and they still say it is the wrong form. You send emails into a black hole and when you call you speak with someone that knows nothing about why your loan was denied so they are guessing at the corrective action. How do I get someone to truly help.

  10. Ivelka Fernandez says:

    Is there any type of loans for business that was open but didn’t generate any income and had to be closed due to pandemic. I’ll like to reopen my business but don’t have fundings to buy equipment.

  11. Diana M Simpson says:

    Are u still able to apply for the loan

  12. Jamie Eisenlohr says:

    Everytime I try to send an email it sends it back saying it’s not deliverable

    • NAHB Now says:

      From the SBA:
      SBA is now reaching out directly to loan borrowers via email to provide more details about how businesses can request an increase. Borrowers should expect to receive emails from @sba.gov or @updates.sba.gov addresses. *

      * Borrowers who experience problems sending email using the link in the message they received must be sure to remove any additional characters that may appear in front of the email address.

    • Denise says:

      That happened to me as well. Double check the email address. If there is a plus symbol in front of the email, delete it. It should go through.

  13. Jonathan Barfour says:

    I have emailed accordingly with the requisite information, however it has been kicked back for the 4th time in the last 24 hour citing ‘access denied’ and not delivered. Any comments on that and how I can successfully send my mail as prescribed please.
    Thanks

    • NAHB Now says:

      From the SBA:
      SBA is now reaching out directly to loan borrowers via email to provide more details about how businesses can request an increase. Borrowers should expect to receive emails from @sba.gov or @updates.sba.gov addresses. *

      * Borrowers who experience problems sending email using the link in the message they received must be sure to remove any additional characters that may appear in front of the email address.

    • Terron T says:

      Check the email address you responded to…there might be a + in front of it. That’s what happened to me. Delete the + sign and resend.

  14. Lily Nguyen says:

    I forgot my first loan account number how do I get it so I can apply for second one

  15. Desiree Everett says:

    I applied I haven’t heard anything yet

    • NAHB Now says:

      If you already applied and have not heard anything about your application, the SBA asks that you call its Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing) or email DisasterCustomerService@sba.gov to check the status of your application. If you have already applied, you do not need to submit your information again.

  16. Pat says:

    I received a loan in May 2020 37k, but have been denied an increase as of last week for not being “verifiable”. How do you fund the first loan and the 2nd PPP 13k loan to a business that is unverifiable? Credit is above the minimum from what I’m reading, but they haven’t even ran it since the initial loan. I called and they said submit for the final reconsideration, but no information on why I am not verifiable so it seems hopeless. I submitted the last three years worth of bank statements and compared them to the covid months is desperation. Also, I didn’t get an email for the new 24 month loss. When I sent an increase to the new email, no reply or confirmation they received my request. Getting worried.

  17. Ryan says:

    I applied for an increase yesterday. I called and spoke with an agent and they say it can take around 2 weeks before you get a response. I’m hoping for an increase but I’m not sure if they will approve or not

    • Kyia says:

      Did they say there were different terms or qualifications this time? Do you need to provide more info? My 1st loan was so easy it was scary, I verified my ID, signed some documents and they pulled my credit. It all happened so fast, I felt like there should have been more to it.

    • Amanda Smith says:

      What is the increase amount based on? What did you have to submit to them. Thanks

  18. Kathy Cooper says:

    My loan amount was declined… What do I have to do to get it back

    • NAHB Now says:

      From the SBA:
      Applicants can request reconsideration in writing within six (6) months of the date of decline letter. Send to:
      E-mail: pdcrecons@sba.gov
      Mail: U.S. Small Business Administration
      Disaster Assistance Processing & Disbursement Center
      14925 Kingsport Road
      Fort Worth, Texas 76155
      Include your application number, any information required to overcome the reason for decline, and any
      additional information that may assist in processing your request.

  19. Vaj says:

    Can we purchase any asset for business with EIDL loan

  20. OHIOLE ITEBIMIEN says:

    If I apply, how long will it take to approve the loan?

  21. Jed Miller says:

    I applied for recent increase of eidl loan with the new increased limits. I got the email, sent it back in, put my application number on it but not my loan number. Do you think this will be ok? I called and talked with customer service and they said you don’t need the loan number, but I read that you do?

  22. J. Norwood says:

    I applied for the increase by responding to the email that was sent. I noticed that I did not include my loan number. Will that be a problem? How can I update this? Do I need to update this? Will this slow down or void my loan increase request? The instructions are to refrain from sending multiple emails. Please advise, thank you!

    • NAHB Now says:

      Per the SBA, this is the process you should follow – do not respond to the email that you were sent:
      Companies that wish to request a loan increase should:

      Send an email to CovidEIDLIncreaseRequests@sba.gov.
      Use subject line “EIDL Increase Request for [insert your 10-digit application number]”.
      Be sure to include in the body of your email identifying information for your current loan including application number, loan number, business name, business address, business owner name(s) and phone number.
      Do not include any financial documents or tax records with your initial request. SBA will send a follow up email notification if it needs additional documents.

      • Emily L. says:

        I’m wondering the same thing. Their reply was obviously not helpful. I’m hoping that they can pull the loan number up from the application number. Fingers crossed.

  23. Tagdasida Urbain Kabre says:

    Can I apply for SBA LAON increases directly or do I have to wait get reached by sba? thank you for any answer that can help.

  24. Bruno says:

    I was asked for my 2019 tax returns AGAIN. And 4506t AGAIN why ?

    • Patrick says:

      Did you reply to the reconsideration email (pdcrecons@sba) or the new 24 month increase (covidEIDLincreaserequests) email? I hope this isn’t a lengthy process, I have been sending them stuff for 2 months now.

      • Steve says:

        PDC recon is to have a declined loan reviewed again while the EIDL increase lets the SBA know you are interested in both or either the increase in borrowed amount or grace period. I have not heard of anyone getting back a response to the EIDL increase email. I keep checking my SBA portal and no activity there yet as well.

        • Patrick D says:

          Interesting Steve. Thank you for the info about not hearing any responses from the covidEIDL emails. I have been requesting a loan increase since December 2020. I was approved in May2020 for 37K and told by the SBA if I wanted an increase I needed to reply to pdcrecons and give them any requested data. I have been denied twice now, having supplied everything under the sun. What is crazy is they approved the first loan with no documentation, but for the reconsideration its been different. I think there being so many request lead to them running with the 24 month plan. I am hopeful for another streamline style loan.

  25. Andrea says:

    I received the email advising me about this program. What application number are they asking for? The one from my original loan that I applied for when the program first started last Spring? Or, is there a new application i must fill out? The email didn’t have a link to a new application. I have my loan number, just can’t seem to locate an App number.
    Thanks
    Andrea

    • Steve says:

      They are asking for the same application number found on your original loan. Go to your SBA portal to see your past loan info. (SBA Economic Injury Disaster Loan Portal Application)

    • Larry Veal says:

      App number and loan number is on the docs you signed its the current lon number and app number you have noe

  26. Vic says:

    Anyone receive an email for the increase in the loan amount from 150,000 to 500,000 yet ?

    • Pat says:

      I haven’t received one yet, but went ahead and sent one anyway. I just received the targeted EIDL advance email that was initiated in February. I think they are just overwhelmed by volume. As I understand it, if you were approved for an initial loan, you are eligible for the 24 month increase. However, due to the amount of fraud from the first release, they may require/request additional paperwork for the increase, which may cause additional delays unfortunately. I hear follow up emails with what to do next will begin April 22nd, but may be a rumor.

  27. amy says:

    We received the initial $1,000 grant and the loan. How do we apply for the remaining $9000 of the initial $10,000 grant?

  28. Grigor Petkov says:

    Hello. I filled Out the Request for the EIDL Loan Increase. It has been 13 days and I have not heard anything back, also I did not receive confirmation that it was received. I checked 10 times to make sure everything was done correctly. Are people receiving Confirmation emails after sending the request for increase?

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