Insights into the world of small business lending and development
SBA announces updates to EIDL Targeted Advance grant programs
The U.S. Small Business Administration (SBA) has announced two new updates to its Economic Injury Disaster Loan (EIDL) program, as the agency works to provide further economic relief for the smallest and hardest hit businesses across the United States.
Below you will find more information about the Targeted EIDL Advance program and Supplemental Targeted Advance, which provide small grants to eligible impacted small businesses, and how you may qualify for additional financial assistance.
Targeted EIDL Advance program
The SBA's Targeted EIDL Advance program, part of the CARES Act, aims to provide business owners in underserved communities with the full $10,000 EIDL Advance. Some business owners received less than that amount during the original program last year, or didn’t receive economic relief after the EIDL Advance funds were exhausted. The SBA is now urging eligible small business owners to apply for the Targeted EIDL Advance on their website.
To qualify, businesses must:
- Have suffered revenue losses of at least 30% during any 8-week period beginning March 2, 2020.
- Show a copy of their 2019 federal tax return for verification purposes
- Be located within a low-income community as designated by this SBA mapping tool
- Have fewer than 300 employees
- Apply for an Economic Injury Disaster Loan in order to apply for a Targeted EIDL Advance grant. But the small business does not have to accept the loan in order to get the grant or even be approved for the loan in order to ask for the grant
Supplemental Targeted Advance
Effective April 22, the SBA modified the Targeted EIDL Advance application process to determine if businesses also qualify for the additional $5,000 Supplemental Targeted Advance. SBA will contact eligible business entities to apply and applications will be processed on a first-come, first-served basis. To qualify for the Supplemental Targeted Advance, an eligible business entity must be in a low-income community, have suffered greater than 50% economic loss, and have 10 or fewer employees.