We’re well into 2022 and even though there’s a glimmer of hope on the COVID-19 front, you will find lingering issues that we wish had stayed in 2022. Consequently, many small businesses continue to be performing get caught up to have their businesses afloat and also to pick up and salvage the bits of companies that were ravaged through the results of a global pandemic. For a lot of business people that have seen a decline in customers or who had to close their doors completely, the financial burden continues to be a bother.
Fortunately, the government has allotted funds to carry on to aid the hardest-hit businesses. One new funding chance to consider may be the Supplemental Targeted EIDL Advance, which became available on April 22, 2022.
In this short article, we’ll do a deep dive into what this program is, who qualifies, and how you can apply. Even when you’ve received other types of funding from the Sba, keep reading — this might provide an additional funding chance to help your company throughout the pandemic.
What May be the Supplemental Targeted EIDL Advance?
The Small Business Administration (SBA) has numerous home loan programs available to small business owners. Since the SBA guarantees a sizable area of the loans, lenders tend to be more likely to offer funding to small businesses that wouldn’t qualify for loans from banks and other traditional financing. One SBA program which has recently garnered attention as a result of COVID-19 is the Economic Injury Disaster Loan (EIDL).
This loan program is built to help business people impacted by disasters — think a tornado or flood. However, many small businesses happen to be in a position to be eligible for a an EIDL because of the coronavirus pandemic. As well as the traditional EIDL program, legislation went by former President Donald Trump and current President Joe Biden has expanded lending options for small business owners.
Most recently, the American Rescue Plan Act of 2022 (ARPA) signed by President Biden introduced the Supplemental Targeted EIDL Advance. Under ARPA, $5 billion was used on this program for eligible small businesses. Small businesses influenced by COVID-19 can receive $5,000 if they meet the criteria established by the SBA and previously completed the Targeted EIDL Advance application (which is not the same thing because the Supplemental Advance application).
The Supplemental Targeted Advance program is now officially open, having launched on April 22, 2022.
Who Is Qualified For that Supplemental Advance?
Not all businesses will entitled to the Supplemental Advance, even if they’ve previously qualified for or received an EIDL loan, EIDL Advance, or EIDL Targeted Advance. Eligible smaller businesses must meet all of the following requirements to get the $5,000 Supplemental Advance:
- 10 or fewer employees
- In operations on or before January 31, 2022
- Located inside a low-income community
- Must have been negatively affected by the COVID-19 pandemic
- Must demonstrate an income loss greater than 50%
If you meet many of these requirements, your company may entitled to the Supplemental Advance. If you have previously received the initial EIDL Advance within the full amount of $10,000, you might still qualify for the Supplemental Targeted Advance should you satisfy the above eligibility criteria. The combined quantity of the Supplemental Targeted Advance ($5,000) with any previously received EIDL Advance or Targeted EIDL Advance ($10,000) cannot exceed $15,000.
When & Ways you can get A Supplemental Advance
The SBA has become directly contacting business people who've previously completed the Targeted EIDL Advance application to a) tell them they may qualify for the Supplemental Advance, and b) tell them how to apply for the Advance. Just those businesses who have been emailed by the SBA concerning the program may apply; there is no application portal open to everyone.
For those business people contacted by the SBA regarding their possible eligibility for that Supplemental Advance, applications is going to be processed on the first-come, first-served basis.
The SBA is alerting would-be applicants that application decisions or requests for additional information is going to be sent from the official government email account ending with @sba.gov. Do not send sensitive information via email to the address that does not end with @sba.gov.
More Funding Helpful information on COVID-Affected Businesses
Aside in the Supplemental Targeted EIDL Advance, there are other financing opportunities available. You are able to apply for the EIDL, that provides as much as $500,000 to assist cover operating expenses. You will get started with your application through the SBA website.
You could also qualify for an EIDL Targeted Advance. If you requested an EIDL Advance and didn’t receive the full amount of your advance, the SBA may be in contact soon. Qualified smaller businesses may receive as much as $10,000 if they didn’t receive any EIDL Advance funds or simply some. There isn't any application process, and also the SBA will get in touch with qualified small businesses that previously applied for the development.
If you need assistance covering payroll and other expenses for example utilities or rent, you may also be eligible for a a Paycheck Protection Program (PPP) loan via a participating lender. Even if you’ve previously received a PPP loan, you may be eligible for a another round of funding provided you meet certain requirements. Prepared to begin? Try one of these simple online lenders.
Don’t delay in getting started. Funding for programs might run out, there are deadlines that must be met to be able to receive funds. As the future continues to be uncertain, you can make sure your business is financially sound as we continue to combat this storm. Best of luck!
