March 24, 2021 | Release Number 21-24

WASHINGTON – The U.S. Small Business Administration is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.

“More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses. However, the pandemic has lasted longer than expected, and they need larger loans. Many have called on SBA to remove the $150,000 cap. We are here to help our small businesses and that is why I’m proud to more than triple the amount of funding they can access ,” said SBA Administrator Isabella Casillas Guzman.

Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time. SBA will reach out directly via email and provide more details about how businesses can request an increase closer to the April 6 implementation date. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic injury up to a maximum of $500,000.

This new relief builds on SBA’s previous March 12, 2021 announcement that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to offer more time for businesses to build back. In order to shift all EIDL payments to 2022, SBA will extend the first payment due date for disaster loans made in 2020 to 24-months from the date of the note and to 18-months from the date of the note for all loans made in the calendar year 2021.

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).

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About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.­

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MONTGOMERY – Governor Kay Ivey on Monday revealed signage for business owners to encourage employees and patrons to wear a mask to prevent the spread of COVID-19. The current health order mandating statewide mask-wearing will end at 5 p.m. on April 9, 2021.

“After April 9, masks will no longer be a mandate, but they remain one of the most successful tools we have to keep folks safe from COVID-19,” Governor Ivey said. “I hope these are helpful to businesses around the state as they set their own protocols to operate safely. Masks are soon to be a memory but until then, let’s wear them out!”

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On February 26, 2021 the U.S. Department of Justice issued a Fraud Alert for Unemployment Insurance claims after the issuance of erroneous forms 1099-G. See Issuance of Erroneous Forms 1099-G due to Fraudulent Unemployment Insurance Claims

The link provides information about fraudulent claims and links to the Office of Inspector General (OIG) and state UI offices.

Fraud has become a significant issue not only for the temporary federally funded programs (e.g. PUA, PUCA and PEUCA) but also as the volume of regular unemployment compensation claims increased due to the COVID-19 recession. Increased fraud and overpayments are now being reflected in 1099-Gs sent to individuals with amounts recorded as having been paid to the individuals that were actually claimed and paid to others through fraud.