SBA Covid-Relief Loan Application Deadlines Approaching — Dec. 31 – Councilor Forbes

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

If your business is still looking for financial relief due to the Covid-19 pandemic, now is the time to act. The deadline for specific US Small Business Administration (SBA) loans will be here before you know it.

Small businesses looking for funding to deal with the impact of the pandemic should keep their eyes on these SBA Covid Relief Loans and application deadlines:

  • Covid-19 Economic Disaster Loan (EIDL). The deadline for submitting applications is December 31. The SBA is unable to accept new applications after the deadline, but will continue to process applications after the deadline, including reviews.
  • Targeted EIDL advance. The SBA will accept applications until December 31. It will continue to process applications after the deadline, including reviews, but will not accept new applications after the deadline.
  • Additional targeted advance. Applications will not be accepted or processed after December 31, including reviews.

These loans will not be available in 2022 unless Congress passes new legislation that offers another round of Covid relief funding.

Related: Best Small Business Loans

Covid-19 Economic Disaster Loan

Businesses applying for an EIDL Covid-19 may be eligible to receive up to $ 15,000 upfront that does not need to be repaid, in addition to receiving up to $ 2 million through the Covid EIDL. The $ 15,000 advances are only available to businesses that first apply for an EIDL Covid. Interestingly, you don’t need to accept EIDL or be approved to receive the advance.

After submitting your application, you will receive an email invitation from the SBA to apply to one of the advanced programs as long as your company is located in a low income neighborhood.

Targeted EIDL advance

The EIDL Targeted Advance provides funds of up to $ 10,000 to businesses that:

  • are in a low income community; and
  • Can demonstrate a reduction of more than 30% in earnings over an eight week period beginning March 2, 2020 or later; and
  • Have 300 employees or less

Before applying, the SBA strongly encourages potential businesses to confirm if they are in a low income community by using a mapping tool because it is required for qualification. If a business meets the criteria for the low income community, the SBA requires proof of gross monthly income to confirm the 30% reduction.

Note: Farm businesses are not eligible for the EIDL Targeted Advance.

Additional targeted advance

The Additional Targeted Advance provides an additional payment of $ 5,000 that businesses do not need to repay. Companies that have already received the original EIDL advance of $ 10,000 may still be eligible for the additional targeted advance, given that they meet the qualification requirements. However, the combined amount of the additional targeted advance with any previous advance from EIDL will not exceed $ 15,000.

Businesses must apply for the EIDL Targeted Advance to be eligible for the Additional Targeted Advance. In addition, eligible companies must be:

  • Located in a low income community; and
  • Able to prove an economic loss of more than 50% during an eight week period starting on March 2, 2020 or later, compared to the same period of the previous year; and
  • Have 10 employees or less

Note: Farm businesses are not eligible for the EIDL Targeted Advance.

Final result

Small business relief from Covid-19 is still available, but not for long. Companies seeking funding have until December 31 to submit their application. Further assistance is available by contacting the SBA’s Covid-19 EIDL Customer Service Center at 833-853-5638 or by sending an email to [email protected]

Source link