As the Covid-19 delta variant continues to surge and new guidance and regulations are placed on certain industries, small business owners may wish to take advantage of targeted grants offered by the Small Business Administration (SBA).
To be considered for the Targeted Economic Injury Disaster Loan (EIDL) Advance and the Supplemental Targeted Advance grants, a business must apply or have applied for an EIDL and meet the eligibility criteria for the advance grants (discussed below). A business does not, however, need to accept the actual EID loan itself or even be approved for the loan to receive one of these grants. Businesses can note that they want to be considered for the EIDL advance grants only on the EIDL application.
The Targeted EIDL Advance provides funds of up to $10,000 that does not have to be repaid. A Targeted EIDL Advance covers working capital needs and normal operating expenses, including rent and utilities.
To qualify for a Targeted EIDL Advance, a business must:
- Be in a low-income area
- Have suffered a reduction in revenue greater than 30 percent over an 8-week period beginning on March 2, 2020, or later
- Have 300 employees or less.
The Supplemental Targeted Advance provides additional funds up to $5,000, which does not have to be repaid. To be considered for the Supplemental Targeted Advance, a business must have applied or apply for the Targeted EIDL Advance. Like the Targeted EIDL Advance, the Supplemental Targeted Advance covers working capital needs and normal operating expenses.
To qualify for a Supplemental Targeted Advance, a business must:
- Be in a low-income area
- Have suffered more than a 50 percent economic loss over an 8-week period beginning on March 2, 2020, or later, compared to the same period in the prior year
- Have 10 employees or less
Once a business applies for an EIDL, the SBA will send an invitation via email to apply for one of the EIDL advances. The invitation will be sent from an official government email account ending with @sba.gov. Before applying, businesses should ensure that they are in a low-income area, which they can determine by using the SBA’s online mapping tool, and review the other eligibility requirements for the advances.
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