EIDL Forgivable Grants of Up To $15,000 Available To All Business Types
on August 04, 2021
The SBA has now opened both the Targeted Economic Injury Disaster Loan (EIDL) Advance and the Supplemental Targeted Advance grants to all eligible business types. Forgivable grants of up to $10,000 were available for a time during 2020 to all businesses. Later, the Targeted EIDL was available to only agricultural businesses. Now all business types can apply if they have not yet done so, but they have to meet certain criteria in order to qualify. Those criteria are as follows:
The Targeted EIDL Advance provides up to $10,000 to applicants who meet ALL 3 of the following criteria:
- Are located in a low-income community. To help applicants determine if they are in a low-income community as defined in section 45D(e) of the Internal Revenue Code, a mapping tool has been created and can be found at https://sbaeidl.policymap.com/newmaps#/. The applicant’s business address must be located in a low-income community, as designated on the map, to qualify for receiving funds. Before you apply for a Targeted EIDL Advance, please check the map to see if your business address is located in a low-income community.
- Can demonstrate more than 30% reduction in revenue. The reduction in revenue must have occurred during any 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.
- Have 300 or fewer employees.
There is also potential for certain qualifying businesses to receive an additional $5000: The Supplemental Targeted Advance provides a supplemental payment of $5,000 that does not have to be repaid, but the criteria are more stringent that the Targeted EIDL Advance. Before applying, make sure your small business meets the following eligibility criteria:
- Is located 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 be in 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. The applicant will need to show that the loss occurred during any eight-week period beginning on March 2, 2020, or later, compared to the same period from the previous year. Applicants 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.
- Has 10 or fewer employees.
Completing the Targeted EIDL Advance application is a requirement to be considered for the Supplemental Targeted Advance. Even if you have previously received the original EIDL Advance in the full amount of $10,000, you may be eligible for the Supplemental Targeted Advance if you meet eligibility criteria. The combined amount of the Supplemental Targeted Advance ($5,000) and any previously received EIDL Advance or Targeted EIDL Advance ($10,000) cannot exceed $15,000. Supplemental Targeted Advances are available to sole proprietors, independent contractors, private nonprofit organizations, and others that usually qualify for the EIDL program and meet the above criteria. However, agricultural businesses, such as farmers and ranchers, are not currently eligible for the Supplemental Targeted Advance.
To be considered for these grants, a business must apply or have previously applied for an EIDL and meet the eligibility criteria for the EIDL advance grants. Applicants do not need to accept the actual EIDL itself or even be approved for the loan in order to receive a grant. On the application form, applicants can note that they want to be considered for the EIDL advance grants only and not the actual EIDL. Businesses can complete an application and find more information at https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/targeted-eidl-advance-supplemental-targeted-advance.
- vgm government