CLARKSBURG W.Va – Almost four million small businesses across the nation applied for a loan to try and survive the pandemic. As of today, those small businesses could be allowed to get even more money to help them with the set backs COVID-19 has caused.
“This is the first time in the history of SBA which started in 1953, that we’ve been able to offer loans for a pandemic,” Kathy Cook, SBA Public Affairs Specialist said. “I think initially no one could envision the corona virus would continue for this long. However, businesses are still suffering.”
Small business are still trying to bounce back from their shutdowns during the pandemic. Some found relief by borrowing a loan from the Small Business Administration and its COVID-19 Economic Injury Disaster Loan (EIDL) program. And now more relief is coming.
Businesses used to only be able to borrow up to $150,000 but now SBA will be offering those who already took out a loan the option to increase it to $500,000 .
“Its a hard ship on a businesses. It’s an unexpected hard ship and we’re glad that we can be a resource for small businesses and help them in their recovery,” Cook said.
Businesses who have already gotten a loan will be receiving emails starting today about the option to increase their loan. Businesses that didn’t take out a loan are still eligible to borrow the $500,000 as well.
Businesses are also being given a longer deferment period to pay back the loan. Businesses that applied in 2020 have a 24 month deferment and new businesses that apply in 2021 will have an 18 month deferment.
“If a business is considering whether or not to apply they should count themselves out,” Cook said.
“The postponement of the first payment due gives them time to get restored and for their business to come back.”
Questions about SBA COVID-19 EIDL and disaster loan payments can be emailed to DisasterCustomerService@sba.gov or directed to SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).