Businesses economically impacted by the pandemic can get more assistance from the Small Business Administration.
The SBA has opened another round of Economic Injury Disaster Loan assistance or Supplemental Targeted Advances, which will provide $5 billion in additional funds to 1 million small businesses and nonprofit organizations that have been severely affected by the pandemic. The program is part of the American Rescue Plan Act announced in March.
“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,” said SBA Administrator Isabella Casillas Guzman. “The SBA’s Supplemental Targeted Advance program aims to reach those businesses with 10 employees or less who need our help today.”
The latest round of SBA funding builds on Guzman’s previous announcement to increase the maximum loan amounts for COVID-19 EIDL assistance from six months of working capital with a maximum of $150,000 up to 24 months of working capital and a maximum of $500,000. The SBA also announced on it would extend deferment periods for all disaster loans, including COVID-19 EIDLs until 2022.
The SBA modified the Targeted EIDL Advance application process to determine if businesses also qualify for the additional $5,000 Supplemental Targeted Advance. SBA will contact eligible businesses to apply and applications will be processed on a first-come, first-served basis.
To qualify for the Supplemental Targeted Advance, an eligible business entity must be in a low-income community, suffered greater than 50% economic loss, and have 10 or fewer employees.
For more information visit the SBA’s website on the program.