Applying For a Targeted EIDL Advance
Depending on your business and location, you could qualify for a targeted EIDL advance. This is a federal program that helps small businesses get financial help. In order to qualify, your business must be located in a low-income area, and you must be able to prove that your business is experiencing a financial loss.
Agricultural Enterprise businesses are not eligible for the new COVID-19 EIDL Advance
Agricultural Enterprise businesses are not eligible for the new COVID-19 EIDL Advance. The Small Business Administration is now only accepting applications from newly eligible agricultural businesses. However, applications submitted prior to April 15 will be processed without reapplication.
To determine if an applicant qualifies for the Targeted Advance, SBA asks a few questions. These questions are designed to confirm basic business information. The answers to the questions will determine if the business meets the economic loss requirements.
An economic loss is defined as a greater than 50% loss of gross receipts. For businesses, this is generally measured by the total monthly gross receipts from January 2019. It is also important to note that a business must prove its eligibility by an eight-week period starting March 2, 2020.
The Paycheck Protection Program, which is administered by the Small Business Administration, provides forgivable loans of up to $10 million to businesses and non-profits that retain workers during a COVID-19 pandemic. Congress provided $349 billion in funding to SBA’s Paycheck Protection Program through the CARES Act.
Businesses must be located in low-income areas
Using the Small Business Administration’s mapping tool, you can identify low-income communities in your area. Once you’ve identified the right community, you can then apply for an EIDL advance. This program will provide you with up to $10,000. However, you must meet certain requirements to qualify.
Businesses that qualify for EIDL loans must be located in a low-income area. This includes both rural and urban communities. Rural areas have different measures of income than urban communities, so you will need to gather information to determine whether or not your business is located in a low-income area.
There are two programs available through the Small Business Administration: the Targeted EIDL Advance and the Supplemental Targeted EIDL Advance. The Targeted EIDL Advance provides up to $10,000 to businesses located in low-income communities.
Businesses that qualify for Targeted EIDL Advance loans must demonstrate that their gross monthly revenue has decreased by at least 30 percent. If the revenue reduction is greater than 50 percent, they may qualify for a Supplemental Targeted EIDL Advance, which provides a $5,000 supplemental payment.
Businesses must be able to prove economic loss
Those who are interested in applying for a Targeted EIDL Advance should be aware that the Small Business Administration has a new process for the application. The new process is easier to follow and includes a mapping tool. The process will take 21 days to complete.
First, applicants need to file their 2019 Federal Tax Return. Once this is done, the SBA will contact eligible applicants. They will then provide a link to the Targeted EIDL Advance portal. The SBA will then notify applicants if they qualify for the advance.
Next, applicants need to provide documentation of their revenue for the month of January 2019. This documentation will include total gross receipts from January 2019 to the present month. In addition, applicants may be asked to provide an IRS Form 4506-T. The IRS Form 4506-T is designed to help the SBA verify their tax information. Depending on where the applicant is located, this process may vary.
Earlier this year, the federal government passed a bill that provides small businesses and nonprofit organizations with relief. It included new funds for Economic Injury Disaster Loan Advance grants. This new funding will allow for an expanded targeted EIDL Advance program.
Targeted EIDL Advances provide eligible small businesses with up to $10,000 in free money. The funds can be used to cover normal operating expenses, rent, utilities, and working capital. This program is offered to businesses in all U.S. states and territories. A $5,000 Supplemental Targeted Advance is also available to qualified businesses. These funds are not repayable.
To apply for a Targeted EIDL Advance, you must have a small business that is located in a low-income community. The small business must also have less than 10 employees.
The SBA will send you an invitation to apply. The email will contain instructions for submitting the documents that you will need to provide. The application will be processed within 21 days. If you are rejected, you can apply for reevaluation.