The Supplemental Targeted Advance: $5000 Economic Relief from the SBA
April 29, 2021
As part of the American Rescue Plan Act signed into law on March 11, 2021, the U.S. Small Business Administration launched a new round of Economic Injury Disaster Loan (EIDL) assistance called the Supplemental Targeted Advance. This program provides additional assistance to eligible small businesses and nonprofit organizations severely affected by the economic effects of the COVID-19 pandemic.
The Supplemental Targeted Advance provides eligible businesses with a supplemental payment of $5,000 that DOES NOT have to be repaid.
You are eligible even if you received an EIDL Advance or Targeted EIDL Advance. Other criteria of this program are as follows:
- The maximum amount under this program is $5,000;
- If you receive an EIDL Advance or Targeted EIDL Advance, you are still eligible, but the aggregate cannot exceed $15,000;
- You must complete the Targeted EIDL Advance application;
- Your business must be in a low-income community. If you are not sure you are in a low-income community use this SBA link.
- You must prove at least a 50% economic loss during an 8 week period from March 2, 2020 or later compared with the same time period the previous year; and
- You must have 10 or fewer employees;
- Need to have filed your 2019 Federal Tax Return; and
- Meet other eligibility requirements applicable to EIDLs.
The SBA will require that you provide your business’ monthly gross receipts for each month from January 2019 through the most recent month-to-date period. Gross receipts include all revenue in whatever form received or accrued
The Supplemental Targeted Advance funds can be used for working capital and normal and customary operating expenses that could have been met had the disaster not occurred, including health care benefits, rent, utilities and fixed debt payments.
Applicants must wait until they receive an email invite from the SBA to apply for Supplemental Targeted Advance. The SBA began sending email invitations to businesses that applied for the Targeted EIDL Advance and are potentially eligible for the Supplemental Targeted Advance. The invitations include a link to the Targeted EIDL Advance portal where businesses can submit their applications.
The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Business and Financial Services Department.