SBA slashes disaster-loan limit from $2 million to $150,000, shuts out nearly all new applicants
An emergency disaster lending program for small businesses has been so overwhelmed by demand that it has significantly limited the size of loans it issues, while blocking nearly all new applications from small businesses, according to people familiar with the situation.
The Economic Injury Disaster Loan program is a long-standing Small Business Administration program that’s separate from the new Paycheck Protection Program, which has challenges of its own.
Congress gave the disaster loan program more than $50 billion in new funding in recent relief bills to offer quick-turnaround loans to businesses slammed by the coronavirus pandemic. But by many accounts, it is failing spectacularly. After initially telling businesses that individual disaster loans could be as high as $2 million, SBA has now imposed a $150,000 limit without publicly announcing the change, said people familiar with the situation who were not authorized to speak publicly.
Additionally, the agency has faced a backlog of millions of applications for the disaster loan program for the past several weeks, several SBA officials have said.
https://www.msn.com/en-us/money/smallbusiness/sba-slashes-disaster-loan-limit-from-dollar2-million-to-dollar150000-shuts-out-nearly-all-new-applicants/ar-BB13JYEH?li=BBnb7Kz
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