WHAT YOU SHOULD KNOW
The Small Business Administration is now urging all eligible small businesses to apply for its Economic Injury Disaster Loans and its Targeted EIDL Advance grant program.
The move comes months after the agency began inviting small businesses who had previously been shortchanged by the grant program in March and April 2020 and gradually expanded that to all small businesses that had applied for grants through the end of the year.
Although the SBA sent out millions of invites to previous applicants to apply for the Targeted EIDL Grant, it was met with a poor response due to many not checking their email inboxes and spam folders or being leary of email with the word (Advance) and not taking the time to read it.
This means that millions could lose out on up to $15,000 in FREE grant money!!!!
The SBA has sent out two subsequent REMINDER INVITES encouraging business owners to apply while money remains. There is about $26 Billion still available.
PROGRAM EXPANSION
The Targeted EIDL Advance has been expanded. This now opens grants to businesses who apply for the EIDL loan in 2021 to receive an invite to apply for the grant.
HOW TO QUALIFY
Targeted EIDL Advance
The Targeted EIDL Advance provides funds of up to $10,000 to applicants who:
- Are in a low-income community. To help applicants determine if they are in a low-income community as defined in section 45D(e) of the Internal Revenue Code, a mapping tool (sbaeidl.policymap.com/app) is available. The business address must be in a low-income community to qualify so SBA encourages potential applicants to check the map to see if they meet the low-income community eligibility requirement before they apply; and
- Can demonstrate more than 30% reduction in revenue during an eight-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction; and
- Have 300 or fewer employees.
Business entities normally eligible for the EIDL program are eligible to apply. This includes sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
Supplemental Targeted Advance
The Supplemental Targeted Advance provides a supplemental payment of $5,000 that does not have to be repaid. Even if you have previously received the original EIDL Advance in the full amount of $10,000, you may be eligible for the Supplemental Targeted Advance if you meet eligibility criteria. The combined amount of the Supplemental Targeted Advance ($5,000) with any previously received EIDL Advance or Targeted EIDL Advance ($10,000) will not exceed $15,000.
Completing the Targeted EIDL Advance application is a requirement to be considered for the Supplemental Targeted Advance.
Before applying, make sure your small business meets the following eligibility criteria:
- Is located in a low-income community. Use this mapping tool to see if your business is in a low-income community as defined in section 45D(e) of the Internal Revenue Code. The business address must be in a low-income community to qualify, so SBA encourages you to check the map before you apply; and
- Can prove more than a 50% economic loss during an eight-week period beginning on March 2, 2020, or later, compared to the same period of the previous year. Applicants need to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) from January 2019 to the current month-to-date; and
- Has 10 or fewer employees.
Supplemental Targeted Advances are available to sole proprietors, independent contractors, private nonprofit organizations, and others that usually qualify for the EIDL program and meet the above criteria. However, agricultural businesses, such as farmers and ranchers, are not eligible for the Supplemental Targeted Advance. Farmers and ranchers may still apply for loan assistance through the COVID-19 EIDL program.
The EIDL program is open for applications through December 31, 2021. Don't delay. Once you receive your invitation, apply!
|