Did you apply for an Economic Injury Disaster Loan (EIDL) and get turned down? Or did you mean to apply and never got to it? We have what could be good news for you, but the deadline to apply is fast approaching.
First, let’s explain what each program is and how they differ.
Overview of EIDL Program
The EIDL program provides up to $15,000 in funding from the SBA that does not need to be repaid. These “advances” are similar to a grant, but without the typical requirements that come with an U.S. government grant. To receive an advance, you must first apply for a COVID-9 EIDL. You do not need to accept the loan or be approved for the loan, however, to receive an advance. Once you submit a loan application, the SBA will invite you via email to apply for one of the advance programs if your business is located in a low-income area. Applications for this loan are being accepted until December 31, 2021, so if you want to apply, do so right away.
Overview of Targeted EIDL Advance Program
Yes, this is different than the EIDL program. The Targeted EIDL Advance provides funds to hard-hit small businesses and nonprofits for up to $10,000 if the following criteria apply:
- Are in a low-income community (same as mentioned above)
- Can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020, or later
- Have 300 or fewer employees
Businesses that received a previous advance in an amount less than $10,000 will have first priority for the Targeted EIDL Advance, which would be the difference between the amount they received and the $10,000 maximum. The second priority group are businesses that applied for EIDL assistance by December 27, 2020 but did not receive an advance.
Overview of Supplemental Targeted Advance Program
Yes, this is a third option to consider. This program allows for payments of $5,000 to the hardest hit small businesses and nonprofit organizations. Applicants that may qualify must meet additional eligibility criteria:
- Are in a low-income community (same as mentioned above)
- Suffered greater than 50% economic loss over an 8-week period since March 2, 2020, compared to the previous year
- Have 10 or fewer employees
The Supplemental Targeted Advance Program is in addition to the $10,000 Targeted EIDL Advance for a total of up to $15,000.
How Do They Work?
First, if you haven’t applied for the EIDL, do so right away. This is the only one of the three that you can apply for directly, and the deadline is fast approaching.
Your ability to apply for the Targeted Advance and Supplemental Targeted Advance loans is based on your original EIDL application. The SBA will email EIDL applicants that qualify for one, or both, of the loans with instructions on determining eligibility and submitting documentation. This means there is no direct way to apply for the Targeted or Supplemental Targeted loans, it is purely based on your EIDL application.
If you made a mistake on your EIDL application and were turned down for the loan, you can request a reevaluation by emailing targetedadvancereevaluation@sba.gov. Also, if you received an email from the SBA and can’t find it or deleted it by accident, you can ask the SBA to send you a new invite by emailing targetedadvance@sba.gov or calling 1-800-659-2955. You can access the SBA’s FAQ on these loans here.
We realize this is all quite confusing, so if you have questions or want to discuss your specific situation, reach out to us for help right away.