Are you eligible for the supplemental targeted EIDL advance in 2021?

In this 5-minute read:

  • What is the supplemental targeted EIDL advance?
  • What’s the difference between the EIDL loan, the EIDL advance, the targeted EIDL advance, and the supplemental targeted EIDL advance?
  • Who is eligible for the supplemental targeted EIDL advance?
  • How can business owners receive the supplemental targeted EIDL advance?
  • Can business owners apply for the EIDL and the advances if they haven’t applied before?

The EIDL, or Economic Injury Disaster Loan, is a financial assistance program through the SBA to help businesses in times of disaster, like natural disasters, or other unpredictable instances that cause financial strain on businesses. 

Since the start of the global COVID-19 pandemic, businesses have (off and on, depending on funding) been able to apply for the COVID-19 EIDL to help keep business operations going during this unpredictable time. The purpose of this loan is to meet financial obligations and operating expenses that businesses would have been able to meet had the pandemic not happened. 

Part of the EIDL program is the EIDL advance, which is essentially a part of the loan that you can receive up front in the form of a grant that you don’t have to pay back. Businesses could previously only receive up to $10,000 for the EIDL advance and targeted EIDL advance, however there is now additional funding in the form of the “supplemental targeted EIDL advance” that may allow businesses to receive an additional $5,000.  

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What is the supplemental targeted EIDL advance?

The supplemental targeted advance allows the smallest and hardest hit eligible businesses to receive a supplemental payment of $5,000 that they won’t have to pay back. Even if you have received an EIDL advance up to the full $10,000, you may still qualify to receive this $5,000. The total for the EIDL advances combined with the supplemental targeted advance may not exceed $15,000. 

What’s the difference between the EIDL loan, the EIDL advance, the targeted EIDL advance, and the supplemental targeted EIDL advance?

As this program has grown throughout the course of the pandemic, more “advances” have been created for the EIDL loan, and it’s easy to see where there could be confusion among each of these. 

The EIDL loan is the loan that businesses can apply for through the SBA during times of disaster, where they could have continued to financially cover their expenses had the disaster not occurred. You have to repay an EIDL loan.

The EIDL advance is a portion of the loan (up to $10,000) that businesses can receive as an advance on their loan. It comes in the form of a grant so they don’t have to pay that portion back. Eligible businesses would receive this advance when they applied for their EIDL loan. 

The targeted EIDL advance began in December 2020, allowing small businesses in low-income communities to receive an EIDL advance. Businesses that received a partial EIDL advance or who applied but received no funding before it ran out could receive the difference of the previous advance that they received. This means if they only received $5,000 of the EIDL advance when they applied, they may be eligible to receive the other $5,000 that they didn’t get. The SBA reached out to those businesses that qualified. 

The supplemental target EIDL advance is new as of April/May 2021, and is an additional $5,000 that does not have to be repaid (on top of the $10,000 for the first EIDL advances). 

Who is eligible for the supplemental targeted EIDL advance?

The SBA is reaching out to those who may qualify for the supplemental targeted advance. But even if you receive an email from them, you’ll want to be sure you meet all the following criteria before applying: 

  • Your business is located in a low-income community, as defined in section 45D(e) of the Internal Revenue Code. You can check the SBA’s mapping tool to see if you are in an eligible community. 
  • You must be able to prove that you’ve seen more than a 50% economic loss during an eight-week period beginning March 2, 2020 or later compared to the same time during the previous year. You’ll need to provide your gross monthly revenue to verify this. 
  • You must have fewer than 10 employees. 

Important note: Agricultural businesses like farmers and ranchers are not eligible for the supplemental targeted advance, but may still apply for loan assistance through the EIDL program. 

How can business owners receive the supplemental targeted EIDL advance?

If you’ve determined that your business is eligible for this advance, then you’ll need to apply online in order to receive the advance. You should have received an email from the SBA with a link to apply for your advance. Each link is unique since it is associated with your individual application number from your previous EIDL application. 

Be sure to apply shortly after you receive the email because it does not last forever and will expire. 

Can business owners apply for the EIDL and the advances if they haven’t applied before?

The EIDL advance is no longer available for new applicants, and the targeted and supplemental targeted advances are only available for those small businesses that have previously applied for an EIDL and have been qualified by the SBA to receive them. 

You may still apply for a COVID-19 EIDL of up to $500,000 depending on the needs of your business. If you wish to apply for the loan, you can do so here

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