What's a Targeted EIDL Advance? Do You Qualify?
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What Is a Targeted EIDL Advance?
Previously received an EIDL Advance of less than $10,000 in an initial round of funding, or Previously applied for an EIDL Advance, but never received the funds
What Are the Requirements to Qualify for the Targeted EIDL Advance?
The business must be located in a low-income community. In order to determine this, the applicant can use a special SBA mapping tool. The business must demonstrate a reduction in revenue of 30% or more during an eight-week period starting March 2, 2020 or later. Business owners can confirm this by providing gross monthly revenue documentation (more on that shortly). It must have no more than 300 employees. This applies to business entities, independent contractors, sole proprietors, and private nonprofit organizations.
How Do You Demonstrate Economic Loss?
If you meet the low-income community criteria, you’ll be asked to provide gross monthly revenue for January 2019 through the most recent month-to-date period (all forms of combined monthly earnings received) to confirm that your revenue has been reduced by 30 percent for the Targeted EIDL Advance and by 50 percent for the Supplemental Targeted Advance. You’ll also be required to electronically sign an IRS Form 4506-T to allow the SBA to request tax information on your behalf. Tax verification processes and requirements for businesses in U.S. territories may differ.
What Is a Supplemental Targeted Advance?
The small business must be located in a low-income community, as designated by the SBA mapping tool. It must be able to prove economic loss of 50% or greater during an eight-week period beginning March 2, 2020 or later (as compared to the same period the previous year) by providing gross monthly revenue documentation. It must have no more than ten employees. This would include independent contractors, sole proprietors, and private nonprofit organizations.
How Do I Apply for a Targeted EIDL Advance?
Can I Apply for a Second Round of EIDL Advance Funds?
Can EIDL Loans Be Forgiven?
EIDL loans, which can be for up to $2 million, are generally not forgivable and will need to be repaid. There is, however, one exception: If a business received an EIDL between January 31, 2020 and April 3, 2020, and applied for a forgivable Paycheck Protection Program (PPP) Loan or refinanced their EIDL into a PPP, their EIDL can be forgiven. EIDL grants are a little different. They offer businesses $1,000 per employee for up to ten employees, cap their limit at $10,000, and do not require repayment.
Are EIDL Loans Taxable?
Frequently Asked Questions
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