SBA Targeted EIDL Advance – What You Need to Know
Whether you are considering applying for a SBA targeted eidl advance or you are already approved for a business loan, there are a few things you need to know. These tips will help you to make sure you get the loan that you need.
Business entity must be located in a low-income community
Among the plethora of tax credit programs offered by the IRS, the New Markets Tax Credit is the best bet for a large business looking to grow its bottom line. To reap the rewards of NMTC funding, your organization needs to qualify as a qualified active low-income community business. Having a well-executed plan is a good place to start. It’s also wise to know what you don’t have, and a willingness to work with a diverse set of partners is the key to a successful NMTC partnership. Those who fail to do their due diligence will find themselves with less than desirable results. Fortunately, CDEs (Community Development Entities) are well suited to educating their clients on the ins and outs of the NMTC program. They are the movers and shakers in their respective fields, and are the ones responsible for certifying your organization to tap into federal tax incentives. They can t help but have a vested interest in your success.
Business must demonstrate more than a 30% loss of revenue
Whether you are a new business owner or an established small business looking for a little financial help, you may be eligible for a SBA Targeted EIDL Advance. This program provides eligible small businesses with a $10,000 grant to help cover day-to-day business expenses.
In order to qualify, you need to be a small business owner and operate in a federally designated low-income community. Applicants must prove that their revenue was reduced by at least 30 percent during an eight-week period beginning March 2, 2020. If you are unsure whether your business is eligible, the SBA has developed a mapping tool that you can use to determine if your business is in a low-income area.
You can apply for this funding through the SBA website. The application will need to be completed and submitted by December 10, 2020. SBA will then contact qualified applicants. Applicants will receive email instructions on how to submit their documents.
To qualify, your business must have 10 or fewer employees. It is also important to note that if you have more than 300 employees, you will not be eligible for the Targeted EIDL Advance.
Business must submit documents in different languages
Applicants for the Small Business Administration’s Economic Injury Disaster Loan (EIDL) program aren’t just limited to the traditional brick and mortar business. The agency also provides assistance to nonprofit organizations. To be eligible, a business must be located in a low-income neighborhood and employ fewer than 10 people. A small business loan from the SBA can be a lifesaver for many small businesses. If you’re interested in getting your hands on a juicy loan, check out the online application portal. The application process is relatively painless, and the SBA has even slashed the standard loan fees for some borrowers.
The SBA also makes a point of implementing fraud prevention measures to protect taxpayers and other small business owners from the embezzlement of billions of dollars in loan proceeds. The EIDL has been around for more than 20 years, but the agency has made a number of changes to streamline the process. The most obvious of these is allowing eligible applicants to file a loan application via online means, without requiring a credit check. This change, along with a larger pool of applicants, could make the loan process faster and more efficient.
Reevaluation of the sba targeted eidl advance application
Earlier this year, the Small Business Administration announced that it would reevaluate the Targeted EIDL Advance application of small businesses that had been denied funds. These loans are designed to help businesses with low incomes get the resources they need to continue doing business. The program has helped nearly 600,000 small businesses in the past year, providing funds to the hardest hit companies in underserved communities.
Businesses are eligible for up to $10,000 in EIDL funding. They can use the funds to pay employees, rent, and other day-to-day expenses. They cannot be used for expanding their facilities or for acquiring fixed assets. The interest rate for the loan is 2.75% for nonprofits and 3.75% for other businesses.
To apply for the Targeted EIDL Advance, businesses must be located in a low-income community. They must have less than 300 employees, and demonstrate a loss of 30 percent of their revenue. They can also receive a $5k Supplemental Targeted EIDL Advance.