Last Updated on April 24, 2022 by Anne-Sophie Reinhardt
The Targeted EIDL (Economic Injury Disaster Loan) Advance Grants design is for those who have been significantly affected by the COVID-19 pandemic. Many small businesses and non-profit organisations have been under the effects of COVID-19, and they are now seeking financial assistance to address the economic ripple effects.
The pandemic-modified Economic Injury Disaster Loan program (EIDL) comes in handy when the Paycheck Protection Program (PPP) funds run out. All eligible businesses can apply for the CARES Act EIDL grant, even if they are not part of the loan program.
How to Get a Targeted EIDL Advance Grant
The US Small Business Administration provides funding through the EIDL program for organisations in federally declared disasters. EIDL became popular due to the COVID-19 national emergency, which raised capital. The COVID-19 EIDL Program, initially announced by the SBA to end December 31, 2020, was extended with the passage of the Consolidated Appropriations Act, 2021.
SBA has increased the EIDL loan limit to $500,000 from $150,000 and began the process of requesting an increase in EIDL loan limits. They provide applicants with online portals that automate much of the process. One can also request an increase via email at [email protected]. The applicant must fill out the necessary details.
- Subject line – Mention subject line – EIDL Request for an Increase in [insert 10-digit Application Number].
- The body contains the loan number, application number and business name. It also includes business owner names, business addresses and phone numbers.
- There should be no attachments. If they need additional information or verification, the SBA will contact you.
Targeted EIDL Advance Grants
Targeted EIDL Advance Grants were announced by the SBA on January 19, 2021, for applicants who applied for an SBA EIDL grant before December 27, 2020. This grant program provides funds for businesses located in low-income communities that have experienced a 30% drop in gross receipts in the past eight weeks. This program is open for applications until December 31, 2021.
Targeted EIDL Advance Grant Eligibility
These applications are eligible for EIDL-targeted grants.
- Nonprofit and for-profit businesses and independent contractors, sole owners, and self-employed people.
- Real estate investment companies, if the reality is being held for investment.
- A small organisation that employs 300 or fewer people and is located in a low-income area
- Operation since January 31, 2020
- Demonstrate an economic loss of 30-40% in eight weeks between March 2, 2020, and December 17, 2021. This is in comparison to the same eight weeks in 2019.
EIDL Targeted Grant Application Process
The SBA notifies grant recipients who receive less than $10k and applicants who apply for grants after the funding budget is out. The following categories are available to applicants who may be eligible:
- Companies that received an EIDL Advance less than $10k. SBA began the process of reaching these businesses. It can take several weeks for businesses to receive invitation emails.
- Businesses who applied for an EIDL loan before December 27, 2020, did not receive any Advance because of the depletion in grant funding.
- Companies that applied for an EIDL loan on December 27, 2020, or later. This group can apply if there is excess funding.
The application undergoes the following steps:
- The eligible group will receive an email from [email protected] and an invitation to submit COVID-19 Targeted EIDL Advance application. The details are required to be filled out through the designated link.
- After completing the application, the applicant should submit the form. The SBA will send a request to the applicant to obtain the 2019 tax transcript from the IRS.
- After granting the permission, login to your EIDL account; next, scroll down to the “Targeted Advanced ” Section and click on “Submit For Processing ”.
Economic Injury Disaster Loan Grant – Supplemental Targeted Grant
You can request the Supplemental Grant in Targeted Grant Applications sent after April 21, 2021. The American Rescue Plan is an act that provides funds for the creation of Supplemental Targeted EDL Advance. Businesses located in low-income areas are eligible for a $5,000 grant.
They must meet the following requirements to be eligible:
- They can prove that their gross receipts have dropped 50% in the past eight weeks
- Employ ten or fewer people
- Already received the EIDL Targeted Grant.
This grant is not available for application. Instead, the SBA will contact EIDL Targeted applicants to inform them of the next steps. Combining both programs, a maximum $15,000 grant is permissible.
The Economic Injury Disaster Loan Grant is response to COVID-19 and has been a tremendous source of assistance for small business owners.
All requests and applications must be sent via an official government email account that ends with @sba.gov. This means you should not send sensitive information via email to addresses without @sba.gov ending.