What Is The SBA Supplemental Targeted EIDL Advance & Is My Small Business Eligible?
We’re well into 2021 and although there’s a glimmer of hope on the COVID-19 front, there are lingering problems that we wish had stayed back in 2020. As a result, many small business owners are still trying to play catch up to keep their businesses afloat and to pick up and salvage the pieces of businesses that were ravaged by the effects of a global pandemic. For many business owners that have seen a decline in customers or who had to close their doors completely, the financial burden continues to be a bother. Fortunately, the government has allotted funds to continue to support the hardest-hit businesses. One new funding opportunity to keep an eye on is the Supplemental Targeted EIDL Advance.
In this article, we’ll do a deep dive into what this program is, who qualifies, and how you can apply. Even if you’ve received other types of funding from the Small Business Administration, keep reading — this may provide an additional funding opportunity to help your business during the pandemic.
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What Is The Supplemental Targeted EIDL Advance?
The Small Business Administration (SBA) has numerous loan programs available to small business owners. Because the SBA guarantees a large portion of the loans, lenders are more apt to offer funding to small businesses that wouldn’t qualify for bank loans and other traditional financing. One SBA program that has recently garnered attention as a result of COVID-19 is the Economic Injury Disaster Loan (EIDL).
This loan program was designed to help business owners impacted by disasters — think a tornado or flood. However, many small business owners have been able to qualify for an EIDL as a result of the coronavirus pandemic. In addition to the traditional EIDL program, legislation passed by former President Donald Trump and current President Joe Biden has expanded lending options for small business owners.
Most recently, the American Rescue Plan Act of 2021 (ARPA) signed by President Biden introduced the Supplemental Targeted EIDL Advance. Under ARPA, $5 billion was allotted to this program for eligible small business owners. Small businesses impacted by COVID-19 can receive $5,000 if they meet the criteria set forth by the SBA.
Who Is Qualified For The Supplemental Advance?
Not all businesses will qualify for the Supplemental Advance, even if they’ve previously qualified for or received an EIDL loan, EIDL Advance, or EIDL Targeted Advance. Eligible small businesses must meet all of the following requirements to receive the $5,000 Supplemental Advance:
- 10 or fewer employees
- In operations on or before January 31, 2020
- Located in a low-income community
- Must have been negatively affected by the COVID-19 pandemic
- Must demonstrate a revenue loss greater than 50%
If you meet all of these requirements, your business may qualify for the Supplemental Advance.
When & How You Can Get A Supplemental Advance
As of early April 2021, the SBA has not yet released details on when the EIDL Supplemental Advance will be available. Details on how to apply are also currently in the works. The SBA has stated that it will provide further information about the program, how to submit an application, deadlines, and other details in the weeks ahead. We will update this article as more news is released about this program.
More Funding Resources For COVID-Affected Businesses
While you’re waiting for more information about the Supplemental Targeted EIDL Advance, there are other financing opportunities available. You can apply for the EIDL, which offers up to $500,000 to help cover operating expenses. You can get started with your application through the SBA website.
You may also qualify for an EIDL Targeted Advance. If you applied for an EIDL Advance and didn’t receive the full amount of your advance, the SBA may be in contact soon. Qualified small businesses may receive up to $10,000 if they didn’t receive any EIDL Advance funds or just a portion. There is no application process, and the SBA will reach out to qualified small business owners that previously applied for the Advance.
If you need help covering payroll and other expenses such as utilities or rent, you may also qualify for a Paycheck Protection Program (PPP) loan through a participating lender. Even if you’ve previously received a PPP loan, you may qualify for another round of funding provided you meet certain requirements. Ready to get started? Try one of these online lenders.
Don’t delay in getting started. Funding for programs may run out, and there are deadlines that must be met in order to receive funds. While the future is still uncertain, you can make sure your business is financially sound as we continue to fight against this storm. Good luck!