SBA Launches Supplemental Targeted Advance for Small Businesses Most Affected by COVID-19
by Victoria Tollossa
The SBA has issued a new round of Economic Injury Disaster Loan (EIDL) assistance – called Supplemental Targeted Advances. This program went into effect on April 22, 2021 to provide $5 billion in additional assistance to small businesses and nonprofit organizations that have been most severely affected by the economic effects of the COVID-19 pandemic. 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 business entities 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, have suffered greater than 50% economic loss, and have 10 or fewer employees. SBA has also announced on March 12 that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to provide more time for businesses to build back.