Insider Spot

Business Resource Center

Welcome to Sekure Merchant Services Business Resource Blog

All Posts

Targeted EIDL Advances: What Small Businesses Need To Know

Small business owners who applied for Emergency Injury Disaster Loan (EIDL) assistance before December 27, 2020, and received partial or no funding through that program may be eligible for Targeted EIDL Advances.

On December 27th  2020, the Covid-19 Targeted Emergency Injury Disaster Load (EIDL) Advance was signed into law. The Targeted EIDL Advance is part of a relief package intended to support small business owners weather the significant burden that Covid-19 restrictions have placed on small business owners across the United States. This package, known as the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, is intended to deliver additional funds to businesses in low-income communities in order to aid them in adapting to the changing economic climate. 

What is the Targeted EIDL Advance? 

This program will advance funds up to $10,000.00 to applicants in low-income communities who have received a previous EIDL Advance of less than $10,000. Applicants who applied and were not successful due to a lack of available program funding will also be eligible for this advance. 

Who Can Qualify for the Program? 

The Targeted EIDL Advance is available to those who applied for EIDL assistance on or before December 27th, 2020. Applicants will be contacted in two phases. 

The Small Business Administration (SBA) will first be contacting those who have already received a partial EIDL Advance, or one that is between $1,000 and $9,000. If you have already applied, you do not have to take any other actions to be considered for this advance. Keep an eye open for an email from an official account. 

  • Applicants must be located in a low-income community as designated by the Internal Revenue Service (IRS). You can learn more about this designation and find more information about Qualified Opportunity Zones on their website. The SBA will be providing more information on how they will be identifying low-income communities and posting it on the Coronavirus Relief Options page of their website. 
  • Qualifying applicants must also be able to demonstrate that their revenue has been reduced by at least 30% during an 8-week period anytime beginning after March 2, 2020. If you meet the low-income community criteria, you will be asked to supply supporting documentation of gross monthly revenue to prove the 30% reduction. 

Once these applicants have been contacted, the SBA will then reach out to EIDL appliances who did not receive an advance because the program lacked the available funding. The SBA will send an email to applicants with instructions that will help them to determine eligibility. 

  • These applicants must meet the criteria listed above (low-income community and 30% reduction in revenue) AND: 
  • Employ 300 people or less. The business entities that are eligible for the EIDL program are also qualified for this program and include independent contractors, sole proprietors, and private not-for-profit organizations. Not eligible are agricultural enterprises. 

You may be asked to provide IRS Form 4506-T which will allow the SBA to request the relevant tax information on your behalf. 

What If I Don’t Qualify for a Targeted EIDL Advance? 

The Covid-19 pandemic has resulted in an unprecedented economic climate for American small business owners and the government is rolling out new programs as the crisis continues to unfold. Even if you do not qualify for this program, others may yet be open to you. Continue to monitor your state, local, and federal governmental websites for news about new and upcoming relief packages that may be relevant to your business needs. You can find more information on private funding options for small businesses on the SBA websiteThey have a search portal that allows small business owners to find real time funding assistance and resources in their local operating communities which you can find here. 

Jennifer Mullen
Jennifer Mullen
Jenn is Sekure's Content Marketing Manager, and a passionate advocate for small business owners. In her spare time, she has deep conversations with her cats Chairman Meow and Oscar Wilde. Her dog Loki comforts her when she loses at board games played with her husband, son, and daughter.

Related Posts

Square POS Troubleshooting

Malfunctioning equipment is a major pain point for merchants. It can lead to frustrated customers, lost sales, and unnecessary down time. If your business runs on the Square app, terminal, or register, you’ve likely come across many error codes and error messages and had to troubleshoot on the fly. This article looks at three of Square’s products and services and how to troubleshoot some of the most common issues.

Buy Now, Pay Later Heats Up with Affirm and Amazon Partnership

The buy now, pay later (BNPL) landscape is getting interesting. Amazon recently announced that it’s teaming up with Affirm to allow customers to pay for purchases with installments. Affirm’s stock popped, as might be expected, nearly doubling from early-summer lows. Future cash flows for the company are looking quite rosy indeed.

Supply Chain Logistics and Holiday Retail Sales

It looks like there’s going to be an unwelcome guest at this year’s holiday party: supply chain mayhem. The year’s busiest shopping season is fast approaching, and COVID-19–related supply chain disruptions are poised to play Grinch. Retailers are struggling to get stock on the shelves, and consumers have been advised to start their Christmas shopping early. Here’s a look at the situation (and how merchants can make the most of it).