Targeted EIDL Advance
The 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 in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency.
Businesses and nonprofits located in a low-income community, that suffered a reduction in revenue of greater than 30%, and have 300 or fewer employees.
For small business continuity, adaptation and resiliency. Also, for any allowable purpose of the EIDL loan.
Economic Injury Disaster Loan (EIDL)
Targeted EIDL Advance and Supplemental Targeted Advance (limited eligibility)
|DESCRIPTION||An EIDL is a long-term, direct loan from the SBA.||
The Targeted EIDL Advance is an emergency grant that provides working capital to businesses and nonprofits located in a low- income community, that suffered a reduction in revenue of greater than 30 percent, and have 300 or fewer employees.
The Supplemental Targeted Advance is an emergency grant for the smallest, hardest-hit businesses and nonprofits located in a low- income community, that suffered a reduction in revenue of greater than 50 percent, and have 10 or fewer employees.
Check this map to see if your community is considered “low-income.”
|PURPOSE||To meet financial obligations and operating expenses that could have been met had the disaster not occurred.||For small business continuity, adaptation and resiliency. Also, for any allowable purpose of the EIDL loan.|
|AMOUNT AVAILABLE||24 months of economic injury, up to a maximum of $500,000.||
Original EIDL Advance provided $1,000 per employee up to a maximum of $10,000; Targeted EIDL Advance provides the full $10,000 to certain small businesses that meet eligibility criteria. Cannot receive more than $10,000 for original EIDL Advance and Targeted EIDL Advance combined.
The Supplemental Targeted Advance provides
$5,000 for working capital needs. Can be combined with original EIDL and/or Targeted EIDL Advance for a total of $15,000.
|repaid and recipients do not have to qualify for or accept a loan.|
2.75% APR (fixed) for nonprofits
Up to 30 years to repay
|COLLATERAL||Required for loans over $25,000||N/A|
|PERSONAL GUARANTEE?||Requires personal guarantee for loans exceeding $200,000||N/A|
|FORGIVABLE?||No. Loan may be repaid at any time with no pre-payment penalties.||EIDL Advances do not require repayment.|
1st payment deferred 18 months; you can make payments if you like. Interest accrues during deferral period.
Businesses can only apply when they receive a direct email invitation from SBA. Applicants do not need to take any action at this time.
SBA will reach out to those that may qualify.
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