Many people were waiting for the notice for the $10,000 advance and were waiting to get your invitation. We are being told by other clients via email and phone that SBA is sending out emails to targeted businesses in low-income areas that applied for the EIDL Advance when it first was created last spring.
If you applied for this before December 27 and received an amount less than $10,000 and you are located in a low-income area, you may get an invitation to apply for the remainder up to $10,000. The email will be from SBA. Keep watching your email.
Please do not submit additional applications on the COVID-19 EIDL portal.
COVID-19 Targeted EIDL Advance was signed into law on December 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. The Targeted EIDL Advance provides businesses located in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency.
The advance funds of up to $10,000 will be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding.
You do not need to take any action at this time. SBA will reach out to those who qualify.
SBA will first reach out to EIDL applications that already received a partial EIDL Advance (between $1,000 – $9,000). Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation. Please do not apply for the loan twice. If you find out you did get the emails please see our video for the step by step application to make sure you are ready to qualify.
Applicants may qualify if they meet the three tests:
TEST # 1- Are located in a low-income community. The definition of a “low-income community” is defined in section 45D(e) of the Internal Revenue Code. Note that the applicant must be located in a low-income community in order to qualify. See video on how SBA will identify low-income communities that was released in late February of 2021.
TEST #2- Can demonstrate more than 30% reduction in revenue during an 8-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. See video to confirm the 30% drop in income.
The next wave for the, SBA will be people who applied for EIDL assistance on or before December 27, 2020, but did not receive an EIDL Advance due to lack of program funding. These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted EIDL Advance if they meet the above criteria (low-income location and reduction in revenue)
TEST #3- Have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
All applicants may be asked to provide an IRS Form 4506-T to allow SBA to request tax return information on the applicant’s behalf.
Please do not submit more than one COVID-19 EIDL applications. Only prior applicants will be considered for the Targeted EIDL Advance at this time.
Please note that the SBA will reach out to you if you qualify!
Good luck to all.