When Will The SBA Increase the EIDL Limit to $2 Million?

While the SBA has made significant improvements to the Economic Injury Disaster Loan (EIDL) processing, many businesses are still held back by the $500,000 cap. The SBA has repeatedly said that they are working to raise the limit to $2 million. Here's when it could happen.

*Update: EIDL 2.0 Is Going Live in August 2021

Has Increasing the EIDL Limit Been Discussed Before?

Yes, it has. Earlier this year, Senator Ben Cardin, Chair of the U.S. Senate Committee on Small Business & Entrepreneurship, issued this statement regarding the increase of the EIDL limit beyond $500,000. He stated, “I am grateful that Administrator Guzman is already working to increase the limit to the maximum $2 million allowed by statute.”

Another article by McCarter & English provides confidence in the EIDL increase as well. The article reported that an official from the SBA testified before the U.S. Senate Committee on Small Business & Entrepreneurship, stating “the agency plans to increase the maximum EIDL program loan amount to $2 million.”

In yet another article by the Cleveland Business Journal, SBA Administrator Isabel Guzman stated in an interview with The Business Journals, that the SBA is making technology upgrades to facilitate another increase of the EIDL program. There is still no official timeline for when this could occur, but this bodes well for businesses that would benefit from the increase.

What Has Delayed The Increase to the EIDL Limit?

The SBA increased their processing time twelve-fold by mid-July, and then was able to increase it once more, to nearly twenty times the number of applications they processed in June. The SBA made several procedural changes and staffing alterations to achieve this, but there are potentially tens of thousands of applications, or more, awaiting approval. The SBA likely will not increase the EIDL amount until the backlog is cleared.

The SBA has also been dealing with fraud cases. James Rivera, the Associate Administrator of the SBA, responded to the Government Accountability Office (GAO)’s report. In his response, Rivera acknowledged many of the concerns addressed in the GAO and explained how they have increased communication and implemented additional measures. Rivera also reiterated the SBA’s commitment to raising the EIDL limit to $2 million.

When Will the SBA Increase the EIDL Limit?

The SBA has yet to announce an official date. Optimistically, the EIDL backlog will be cleared in the coming week or so, per their previous commitment to clear it by mid-August. If they succeed in clearing the backlog in the coming week(s), the SBA could potentially announce the increase by September.

Conclusion: EIDL Increase May Occur In September

The SBA has made significant progress in improving the EIDL program experience for businesses, but there remains more to do. Based on their staffing increase, procedural changes, and enhancement in loan processing,  SBA could potentially increase the EIDL limit to $2 million in September.

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