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The Small Business Administration is set to triple loan amounts for businesses hurt by Covid

A undersized business owner in Chinatown, San Francisco

Source: CNBC

Beginning April 6, small businesses and non-profits can administer for up to 24 months of relief, with a maximum loan amount of $500,000, the Small Business Administration announced Wednesday.

The prior to limit for such businesses was six months, with a maximum loan amount of $150,000.

“More than 3.7 million points employing more than 20 million people have found financial relief through SBA’s Economic Maltreatment Disaster Loans, which provide low-interest emergency working capital to help save their businesses,” SBA Administrator Isabella Casillas Guzman said in a declaration. “However, the pandemic has lasted longer than expected, and they need larger loans.”

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How to apply

The EIDL program offers businesses 30-year fixed-rate advances that provide capital for normal operating expenses, including health-care benefits, rent, utilities and fixed answerable for payments, for a certain period. These loans are not forgivable, unlike EIDL Advance loans or money lent totally the Paycheck Protection Program.

Eligible small businesses and non-profits can apply for loans through the end of the year and may continue to entreat additional funds even after the Dec. 31 deadline, according to the SBA.

The SBA to give guidance on topping up loans

There is also considerate news for borrowers that have already applied or received loans through the SBA program. Some loans approved former to the week of April 6 will be eligible for an increase based on the new maximum amounts announced Wednesday.

In addition, businesses that in the past received loans but would like to be considered under the new guidelines do not have to take any immediate action, the SBA said.

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