The U.S. Small Business Administration (SBA) announced on Thursday, April 22, that it will provide $5 billion in additional Economic Injury Disaster Loan (EIDL) assistance to one million small businesses and nonprofit organizations that have been most severely impacted by the economic effects of the COVID-19 pandemic. The additional loans fall under the Supplemental Targeted Advance loan program, the latest SBA relief program to launch as part of the American Rescue Plan Act on March 11, 2021.

 

SBA Administrator, Isabella Casillas Guzman, said many of the nation’s small businesses are still struggling to recover from the economic impact of the COVID-19 pandemic, and 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 ten employees or less who need our help today,” she said. “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.”

 

SBA representatives said that the additional loan relief builds on Guzman’s action on April 6 to increase 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. The SBA had previously announced on March 12 that the agency would also extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to provide more time for businesses to build back.

 

Effective April 22, the SBA modified the Targeted EIDL Advance loan application process to determine if businesses also qualify for an additional $5,000 available under the new Supplemental Targeted Advance loan program. SBA will contact eligible businesses to apply, and applications will be processed on a first-come, first-served basis. To qualify for the Supplemental Targeted Advance loan program, an eligible business must be based in a low-income community, it must have suffered greater than 50 percent economic loss, and must have ten or fewer employees.

 

Norwood News reported in February that the SBA had begun offering PPP loans to sole proprietors and businesses with less than 20 employees.

 

For more details about both the Targeted EIDL Advance loan program and the Supplemental Targeted Advance loan program, visit SBA.gov/eidl or click here. Eligible entities can email questions about the loan programs to TargtedAdvance@sba.gov. COVID-19 EIDL disaster loan payment questions can be sent to DisasterCustomerService@sba.gov and business owners can also contact SBA’s Customer Service Center by phone at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).