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

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If your business is still seeking financial relief as a result of 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.

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Small businesses seeking funding to help with the pandemic impact should keep an eye on these loans and SBA application deadlines for dealing with Covid:

  • Disaster loan for financial injuries Covid-19 (EIDL). The deadline for applications is December 31st. The SBA may not accept new applications after the deadline, but will continue to process applications after the deadline, including reviews.
  • Targeted EIDL deposit. 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.
  • Supplementary Targeted Advance. Applications will not be accepted or processed after 31 December, including reviews.

These loans will not be available until 2022 unless Congress passes new legislation offering another round of funding to relieve Covid.

Related: The best loans for small businesses

Disaster loan for financial injuries Covid-19

Businesses applying for Covid-19 EIDL may be eligible for a down payment of up to $ 15,000 which does not need to be refunded, in addition to receiving up to $ 2 million through Covid EIDL. $ 15,000 down payment is only available to companies applying for the first Covid EIDL. Interestingly, you do not have to accept the EIDL or be approved to receive the deposit.

Once you have applied, you will receive an email invitation from the SBA to apply for one of the previous programs, provided your business is is located in a low income area.

Targeted EIDL deposit

Targeted EIDL Advance provides funds up to $ 10,000 to companies that:

  • They are located in a low-income community. and
  • It can show more than a 30% reduction in revenue over an eight-week period beginning March 2, 2020 or later. and
  • Have 300 or fewer employees

Before Applying, SBA Strongly Encourages Candidate Companies to Confirm They Belong to a Low-Income Community using a mapping tool because it is required for qualifications. If a company meets the criteria of the low-income community, the SBA requires proof of gross monthly income to confirm the 30% reduction.

Note: Agricultural enterprises are not eligible for the Targeted EIDL advance.

Supplementary Targeted Advance

The additional targeted deposit provides an additional payment of $ 5,000 that businesses do not have to repay. Businesses that have previously received the initial $ 10,000 EIDL advance may still be eligible for the Supplemental Targeted Advance, as long as they meet the qualification requirements. However, the combined amount of the Supplemental Targeted Advance with any previous EIDL advances will not exceed $ 15,000.

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

  • It is located in a low-income community. and
  • May show financial loss of more than 50% during an eight-week period beginning on or after 2 March 2020, compared with the same period of the previous year; and
  • Have 10 or fewer employees

Note: Agricultural enterprises are not eligible for the Targeted EIDL advance.

Conclusion

Covid-19 relief for small businesses is still available, but not for long. Businesses seeking funding have until December 31st to submit their applications. Additional assistance is available by contacting the SBA Covid-19 EIDL Customer Service Center at 833-853-5638 or by email at TargetedAdvance@sba.gov.

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