What You Need to Know About the New Targeted EIDL Advance.
The Economic Aid Act provides the Targeted EIDL Advance for businesses who did not receive the full $10,000 on their original EIDL Advance and are located in low-income communities. If funds remain available, the program will also include businesses who applied for an EIDL Advance but did not receive any funds due to lack of program funding at the time they applied. You do not need to contact the SBA. If your business is located in a low-income community and you received less than $10,000 for your EIDL Advance the SBA will contact you via an SBA email. The email will include instructions to determine eligibility and to submit documentation. Applicants may qualify if they:
- Are located in a low-income community as defined by section 45D(e) of the Internal Revenue Code (Mapping Tool).
- Can demonstrate more than a 30% reduction in revenue during an 8-week period beginning on March 2, 2020 or later. The reduction is calculated based on gross monthly revenue for January 2019 through the most recent month-to-date period. If you have any additional questions, book a meeting with our team.
Example of the notice being sent:
INVITATION TO SUBMIT COVID-19 TARGETED EIDL ADVANCE APPLICATION
Dear John Doe,
The SBA is launching a new round of Economic Injury Disaster Loan (EIDL) Advances – called Targeted EIDL Advance – which provides eligible businesses with $10,000 in total grant assistance. If you received the EIDL Advance last year in an amount less than $10,000, and you meet the Targeted EIDL Advance eligibility requirements, you may be eligible to receive the difference up to the full $10,000. The combined amount of the Targeted EIDL Advance and any previously received Advance will not exceed $10,000.
Please review the eligibility criteria and application instructions below carefully before you proceed to the application portal for the Targeted EIDL Advance.
Businesses eligible for the Targeted EIDL Advance must meet ALL of the following eligibility criteria:
- Located in a low-income community, as defined in section 45D(e) of the Internal Revenue Code. SBA will map your business property address to determine if you are in a low-income community when you submit your Targeted EIDL Advance application.
- Suffered economic loss greater than 30 percent, as demonstrated by an 8-week period beginning on March 2, 2020, or later, compared to the previous year. You will be required to provide the total amount of monthly gross receipts from January 2019 to the current month-to-date.
- Must have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. However, agricultural enterprises, such as farmers and ranchers, are not eligible to receive the Targeted EIDL Advance.
We recommend that you have a copy of your 2019 Federal Tax Return on hand to assist you in completing the Targeted EIDL Advance application questions. You will also be asked to confirm that the information provided in your original EIDL application is still accurate. If there are any changes, you may be asked to provide documentation in order to determine if you are eligible for a Targeted EIDL Advance. Applicants that pass the initial eligibility requirements will also be required to electronically sign an IRS Form 4506-T allowing SBA to obtain tax transcripts directly from the IRS before we can approve your request for the Targeted EIDL Advance.
SBA’s goal is to process all requests within 21 days of receiving a completed application. All application decisions will be communicated via email. Due to limited available funds for the Targeted EIDL Advance program, SBA will not be able to reconsider applications through an appeal process, so please make sure that your information is correct when submitting your application.