The U.S. Small Business Administration recently launched a new round of Economic Injury Disaster Loan (EIDL) assistance – called supplemental targeted advances – to provide $5 billion in additional assistance to 1 million small businesses and nonprofit organizations that have been most severely affected by the economic effects of the COVID-19 pandemic.
The supplemental targeted advance program is the latest SBA relief program to launch as part of the American Rescue Plan Act.
“Many of our nation’s small businesses are still struggling to recover from the economic impact of the COVID-19 pandemic, and we’ve found that the smallest businesses – the majority of which are minority-owned – are hurting the most. The SBA’s supplemental targeted advance program aims to reach those businesses with 10 employees or less who need our help today,” SBA Administrator Isabella Casillas Guzman said. “The supplemental targeted advance funds will help us make sure that no small business falls through the cracks or gets left behind. This program is a crucial part of our efforts to bring businesses back, create jobs and build an equitable economy for everyone.”
This additional relief to the smallest and hardest-hit businesses builds on Guzman’s April 6 action to increase the maximum loan amounts for COVID-19 EIDL assistance from six months of working capital with a maximum of $150,000 up to 24 months of working capital and a maximum of $500,000. SBA also announced on March 12 that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to provide more time for businesses to build back.
Effective April 22, the SBA modified the targeted EIDL advance application process to determine if businesses also qualify for the additional $5,000 supplemental targeted advance. SBA will contact eligible business entities to apply and applications will be processed on a first-come, first-served basis.
To qualify for the supplemental targeted advance, an eligible business entity must be in a low-income community, suffered greater than 50% economic loss, and have 10 or fewer employees.
For details about the targeted EIDL advance and supplemental targeted advance program, visit SBA.gov/eidl. Eligible entities can email questions about the SBA targeted EIDL advance and supplemental targeted advance to [email protected]; COVID-19 EIDL disaster loan payment questions to [email protected]; and contact SBA’s customer service center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).