Targeted EIDL Advance Grant is a program under the Economic Injury Disaster Loan (EIDL) that provides financial grants for small business owners. It prioritizes those small businesses that are severely impacted by the pandemic.
The said program primarily gives a maximum of $10,000 for eligible individuals that can be used to solve their problems within their respective businesses or enterprises. Moreover, the main concept of the Targeted EIDL Advanced Grant is to support and assist every business owner in the United States to recover from the loss they gained as a result of Covid-19.
Also, the said program is a grant and not a loan, which means that the given financial assistance is completely free and does not need to be repaid by the beneficiaries.
Targeted EIDL Advance Grant Allocated Budget
The targeted EIDL Advanced Grant was created under the COVID-19 stimulus Bill that was signed into law last December 27, 2020. The U.S. Congress has an allocated budget of $30 billion for the said program.
Moreover, the United States Small Business Administration (SBA) manages the said program and other EIDL programs. Based on the latest SBA, they just approved about 360,376 requests for Targeted EIDL Advanced Grant that resulted in $3 billion last August 19.
However, the said administration still needs to disburse almost $27 billion in unused funds for the said program. SBA encourages every small business owner to apply for Targeted EIDL Advanced Grant to have financial support.
As the said program is open, it will continue to accept eligible small business owners and organizations. The Targeted EIDL Advanced Grant ensures that it will support aid for all small business owners in the United States.
Where Can I Use My Targeted EIDL Advance Grant?
The $10,000 from the Targeted EIDL Advanced Grant can be useful for eligible business owners to have a new beginning with their respective businesses. The financial assistance from the said program can be used within a wide and broad range of things related to business.
It includes payroll and benefits, rent, and utilities, fixed debt payments, or even capital to start over after the great loss from the pandemic. However, there are some restrictions on the funds of the Targeted EIDL Advanced Grant.
Business owners cannot use financial aid bonuses, or dividends, relocate, expand facilities, or acquire fixed assets. These aspects are not the priorities of businesses as they’re impacted by the pandemic. Small business owners must be wise in using their respective Targeted EIDL Advanced Grant.
Targeted EIDL Advance Grant Qualification
The Targeted EIDL Advanced Grant does not qualify all business owners in the United States. It has eligibility rules to check the background and information of applicants. The set qualification rules apply to all of the states and territories in the United States. Small business owners who are not able to meet the given requirements are automatically disqualified from the said program.
Refer to the list below for the eligibility list of the Targeted EIDL Advanced Grant.
- Businesses must be in a low-income community as defined by section 45D(e) of the Internal Revenue Code. SBA encourages owners to check whether their business address is located in a low-income community.
- Businesses must demonstrate a loss or reduction in revenue by at least 30%. This applies for 8 weeks starting from March 2, 2020, or later. Businesses that qualified for the low-income community must provide their Gross Monthly Revenue to check their 30% loss. Gross Monthly Revenue refers to the total combined earnings from profits and salaries.
- Businesses must have a maximum of 300 employees. Those businesses that have employed individuals above 300 may not be eligible for the program.
Businesses must follow the definition of the Coronavirus Aid, Relief, and Economic Security Act.
- Small businesses or cooperatives with less than 500 employees.
- Individuals operate as sole proprietorships or as independent contractors.
- Private nonprofit organizations
- Agricultural enterprises or cooperatives
- Businesses and organizations must operate last January 31, 2020
- Businesses and organizations must be directly impacted by the pandemic.
How Can I Apply for the Grant?
The application process for the Targeted EIDL Advanced Grant is easy and convenient for small business owners. There may be two situations upon applying for the said grant. See below for how to apply.
- Small business owners who applied for the Economic Injury Disaster Loan (EIDL) Program do not need an application process. They will receive an invitation to apply for the said program and the process will continue.
- Small business owners who did not apply for the Economic Injury Disaster Loan (EIDL) Program may need an application process. However, small business owners do not need to accept the loan and just wait for the email invitation for the Targeted EIDL Advance Grant and start the process.
- For inquiries and questions regarding the Targeted EIDL Advance Grant, applicants can directly contact the SBA through the following; SBA’s Customer Service Center at 1-800- 659-2955
- SBA encourages applicants to not duplicate their application for the Targeted EIDL Advanced Grant. This is required to avoid problems throughout the application process.
Required Documents for the Application
For the application process of the Targeted EIDL Advance Grant, SBA may require documents for the applicants. Check the list below for some of the documents that will be needed for the application of the said program.
- 2019 Federal Tax Return
- Copy of Gross Monthly Revenue
- IRS Form 4506-T (can be done electronically)