There’s no doubt that the pandemic has put a strain on many small businesses in different communities. Needing to close for a long period of time has greatly impacted revenue therefore putting some small business at risk of closing.
Fortunately, the Small Business Administration has been approving EIDL (Economic Injury Disaster Loan) advance grants for COVID-19. These grants are specifically for small businesses that were greatly impacted by the pandemic, but there are also specific requirements that a small business needs to match in order to receive this grant.
In this post we will answer all the frequently asked questions regarding the advance grant and how to go about the application process.
What exactly is the advance grant?
The targeted EIDL advance grant provides funds up to $15,000 that does not have to be repaid. These funds are for covering working capital needs and normal operating expenses.
Businesses that may qualify will be located in a low income community. They will also be able to show proof of more than 30% reduction in revenue during an 8 week period starting March 3, 2020 or later. These businesses also have 300 employees or less. If the applying business meets all the low income criteria, they will be asked to provide proof of gross monthly revenue.
Each business looking to apply for this advance grant will first need to apply for a COVID-19 EIDL loan, but they do not need to be approved for or accept the loan in order to apply for the advance grant.
Where to apply?
Applying is very easy and can be done on the SBA website. Click the link below to be directed to the application.