This just in: The SBA will begin distributing $5 billion in additional grants to small businesses hardest hit by the pandemic.
The “Supplemental Targeted Advances” will go to 1 million eligible small businesses, which the SBA will begin contacting over the coming weeks. Even businesses that already received EIDL grants will be eligible.
The SBA recently modified its Targeted EIDL Advance application process to see if businesses also qualified for the $5,000 supplemental grant, and small businesses that are contacted by the agency will have their applications processed on a first-come, first-served basis, the SBA said.
“Many of our nation’s small businesses are still struggling to recover from the economic impact of the COVID-19 pandemic, and we’ve found that the smallest businesses — the majority of which are minority-owned — are hurting the most. The SBA’s Supplemental Targeted Advance program aims to reach those businesses with 10 employees or less who need our help today,” said SBA Administrator Isabella Casillas Guzman in a statement.
To be eligible for these new supplemental grants, businesses must be located in a low-income community. Businesses can use this tool to determine eligibility. They must be able to prove 50% or more in economic losses during any eight-week period beginning on March 2, 2020 or later, compared to the same time in 2019. Applicants will need to provide monthly revenue from January 2019 to the current month. Lastly, the business must have 10 employees or fewer, and farmers and ranchers are not eligible for the supplemental grant.
For details about the Targeted EIDL Advance and Supplemental Targeted Advance program, visit SBA.gov/eidl. Small businesses with questions about the new supplemental grants can email questions to the SBA at TargetedAdvance@sba.gov.
“The Supplemental Targeted Advance funds will help us make sure that no small business falls through the cracks or gets left behind. This program is a crucial part of our efforts to bring businesses back, create jobs and build an equitable economy for everyone,” Guzman said.
MORE COVID RELIEF OPTIONS
In other developments, the SBA said it was more than tripling the maximum size of its EIDL loans from six months’ worth of economic injury — or up to a maximum of $150,000 — to 24 months of economic injury with a maximum loan amount of $500,000. It is also working to increase the limit.
The SBA has also released new details about its $28.6 billion Restaurant Revitalization Fund, The RRF will launch in the coming weeks. The RRF will offer $28.6 billion in grants to hard-hit restaurants and bars, with restaurants able to apply for grants based on lost revenue. Additionally, $5 billion of that total will be set aside expressly for businesses with 2019 gross receipts of less than $500,000. Find out more and sign up for alerts about the program here.
The Shuttered Venue Operators Grant program was reopened this week. It was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance. Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees. Apply here.
The SBA also announced in March that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to provide more time for businesses to build back.