SBA Announces New EIDL Loan
April 27, 2021—The U.S. Small Business Administration (SBA) had launched a new round of Economic Injury Disaster Loan (EIDL) assistance, which looks to target businesses hit most severely by the economic effects of COVID-19.
According to a press release, the new round of assistance called “Supplemental Targeted Advances” began on April 22 and will provide $5 billion in additional assistance to 1 million small businesses and nonprofit organizations.
Effective April 22, 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 percent economic loss, and have 10 or fewer employees.
“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. The SBA’s Supplemental Targeted Advance program aims to reach those businesses with 10 employees or less who need our help today,” SBA Administrator Isabella Casillas Guzman says in the press release. “The Supplemental Targeted Advance funds will help us make sure that no small business falls through the cracks or gets left behind. This program is a crucial part of our efforts to bring businesses back, create jobs and build an equitable economy for everyone.”