WASHINGTON – The U.S. Small Business Administration recently launched a new round of economic injury disaster loan assistance – called supplemental targeted advances – that will provide $5 billion in additional assistance to a million small businesses and nonprofits that have been most severely affected by the economic effects of the COVID-19 pandemic, the agency said in a news release.
The Supplemental Targeted Advance program is the latest SBA relief effort to launch as part of the American Rescue Plan Act.
“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,” said SBA Administrator Isabella Casillas Guzman. “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.”
Additional relief for the smallest and hardest-hit businesses builds on Guzman’s recent action to boost 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, according to the news release.
SBA also announced in March 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.
The SBA has modified the Targeted EIDL Advance application process to determine if businesses also qualify for the additional $5,000 Supplemental Targeted Advance, according to the news release. Agency officials 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, businesses must be in a low-income community, have an economic loss greater than 50% and have 10 or fewer employees.
For details about the program, visit SBA.gov/eidl. Eligible businesses can email questions about the SBA Targeted EIDL Advance and Supplemental Targeted Advance to TargetedAdvance@sba.gov, send disaster loan payment questions to DisasterCustomerService@sba.gov or contact SBA’s Customer Service Center at (800) 659-2955. Those who are hearing impaired may call (800) 877-8339.