A new round of Economic Injury Disaster Loans will provide $5 billion in additional assistance to one million small businesses and nonprofits most severely affected by the economic fallout from the COVID-19 pandemic.
The SBA says the new assistance, called Supplemental Targeted Advances, will focus on businesses with 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,” SBA Administrator Isabella Casillas Guzman said in a statement.
“The Supplemental Targeted Advance funds will help us make sure that no small business falls through the cracks or gets left behind."
The announcement follows recent SBA actions that significantly increase maximum loan amounts for COVID-19 EIDL assistance from six months of working capital with a maximum of $150,000 up to 24 months and a maximum of $500,000.
In the new EIDL program, which became effective April 22, the SBA modified the 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 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.
Here are more details about the Targeted EIDL Advance and Supplemental Targeted Advance program.
Eligible entities can email questions about the SBA Targeted EIDL Advance and Supplemental Targeted Advance to TargetedAdvance@sba.gov.
Questions on COVID-19 EIDL disaster loan payment can be directed to DisasterCustomerService@sba.gov or 800.659.2955 (800.877.8339 for the deaf and hard of hearing).