- U.S. Small Business Administration issues guidance for applicants who were denied a grant under the Targeted EIDL Advance program
- Requests for reevaluation will be accepted through Feb. 15
- The program provides $10,000 grants to the hardest-hit small businesses in low-income areas
Summary by Dirk Langeveld
The U.S. Small Business Administration has updated its guidance for small businesses who were denied funds under the Targeted EIDL Advance program and would like to be reconsidered.
While the SBA stopped taking new Targeted EIDL Advance applications at the end of 2021, those seeking reevaluation have until Feb. 15 to make this request. Applicants should also provide additional information establishing why they are eligible for the funds.
Targeted EIDL Advance was established under the COVID Economic Injury Disaster Loan program, which offered low-interest loans to small businesses suffering revenue shortfalls due to the COVID-19 pandemic. Targeted EIDL Advance provided $10,000 grants to the hardest-hit businesses in underserved communities.
Businesses seeking a reevaluation must be located in a low-income community; demonstrate that they suffered more than a 30 percent loss in revenue during an eight-week period starting on March 2, 2020, or later; and have 300 or fewer employees.
The SBA has provided a mapping tool to assist applicants in determining whether their business is in an area that qualifies as a low-income community. Businesses can potentially qualify if they have relocated to a low-income community since submitting their original application, but must provide proof of relocation through a document such as a lease agreement, mortgage, or utility bill with the business’s name on it.
Applicants must also provide supporting documentation to show a drop in gross monthly revenue. This encompasses all forms of combined monthly earnings received, such as profits or salaries.
Businesses may request a reevaluation of their Targeted EIDL Advance application by e-mailing email@example.com. They can also call the SBA’s Customer Service Center at 1-833-853-5638 or e-mail DisasterCustomerService@sba.gov for additional assistance.
According to the latest SBA data, Targeted EIDL Advance assisted 588,369 businesses with $5.14 billion in grants. The traditional COVID EIDL program has provided $329.74 billion to 3.88 million businesses, while a Supplemental Targeted Advance program assisted 457,365 businesses with $2.29 billion.
The SBA noted how the COVID EIDL program implemented new processes and performance management to speed up the processing of the program’s loans, and as a result was able to clear a backlog of more than 600,000 loans and immediately process new applications. The agency has also increased the program’s fraud controls and is working closely with the SBA’s Office of the Inspector General to monitor the program.