The SBA has established a Supplemental Targeted Advance Program under the COVID-19 Economic Injury Disaster Loan (EIDL), enabling certain businesses to receive an additional $5,000 grant which does not need to be repaid. These funds are in addition to the Targeted Advance program grant of $10,000 (discussed in further detail here), bringing the total advance funding to $15,000. These “advances” are similar to a grant, but without the typical requirements that come with a U.S. government grant.
In order to receive either of the funding programs, a business must first apply for a COVID-19 EIDL, however they do not need to be approved for the loan or accept the loan. The SBA will automatically invite businesses who meet the qualifications to apply for one or both of the advance programs if the business qualifies. Here are some of the specifics on who might qualify:
Targeted EIDL Advance: $10,000 in funding to businesses who meet the following criteria:
- Are in a low-income community, as defined in section 45D(e) of the Internal Revenue Code, a mapping tool is available. The business address must bein a low-income community to qualify so SBA encourages potential applicants to check the map to see if they meet the low-income community eligibility requirement before they apply; and
- Can demonstrate more than 30% reduction in revenue during an eight-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction: and
- Have 300 or fewer employees.
Supplemental Targeted Advance: additional $5,000 in funding to businesses who meet the following criteria:
- Are in a low-income community. Use this mapping tool to see if your business is in a low-income community as defined in section 45D(e) of the Internal Revenue Code. The business address must bein a low-income community to qualify, so SBA encourages you to check the map before you apply; and
- Can prove more than a 50% economic loss during an eight-week period beginning on March 2, 2020, or later, compared to the same period of the previous year. You will need to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) from January 2019 to the current month-to-date; and
- Have 10 or fewer employees.
Completing the Targeted EIDL Advance application is a requirement to be considered for the Supplemental Targeted Advance.
The following links are provided by the SBA for further information:
- Targeted and Supplemental Advances information
- Targeted and Supplemental Advances FAQ
- COVID-19 EIDL Application
SBA Financial Assistance Services