SBA Covid-Relief loan application deadlines are approaching—Dec. 31 – Forbes Advisor

If your business is still seeking financial assistance in the wake 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.

Small businesses seeking funding to deal with the impact of the pandemic should keep their eyes peeled for these SBA Covid relief loans and application deadlines:

• Covid-19 Economic Disaster Loan (EIDL). The deadline for submitting applications is December 31. The SBA is unable to accept new applications after the deadline, but will continue to process applications after the deadline, including reconsiderations.
• Targeted EIDL advance. The SBA will accept applications until December 31. It will continue to process applications after the deadline, including reconsiderations, but will not accept new applications after the deadline.
• Additional targeted advance. Applications will not be accepted or processed after December 31, including reconsiderations.

These loans will not be available in 2022 unless Congress passes new legislation that offers another round of Covid relief funding.

Related: Best Small Business Loans

Covid-19 Economic Disaster Loan

Businesses applying for a Covid-19 EIDL may be eligible to receive up to $15,000 in advance that does not need to be repaid, in addition to receiving up to $2 million through the Covid EIDL . Advances of $15,000 are only available to businesses that first apply for a Covid EIDL. Interestingly, you do not need to accept the EIDL or be approved to receive the advance.

After submitting your application, you will receive an email invitation from the SBA to apply for one of the advanced programs as long as your business is located in a low income area.

Targeted EIDL Advance

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

• Are in a low-income community; and
• Can demonstrate a reduction of more than 30% in earnings during an eight-week period beginning March 2, 2020 or later; and
• Have 300 employees or less

Before applying, the SBA strongly encourages potential businesses to confirm if they are in a low-income community by using a mapping tool because it is mandatory for qualification. If a business meets the low-income community criteria, the SBA requires proof of gross monthly income to confirm the 30% reduction.

Note: Agricultural businesses are not eligible for the Targeted EIDL Advance.

Additional targeted advance

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

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

• Located in a low income community; and
• Able to prove an economic loss of more than 50% during an eight-week period beginning on or after March 2, 2020, compared to the same period of the previous year; and
• Have 10 or less employees

Note: Agricultural businesses are not eligible for the Targeted EIDL Advance.

Conclusion

Covid-19 relief for small businesses is still available, but not for long. Companies looking for financing have until December 31 to submit their request. Additional assistance is available by contacting SBA’s Covid-19 EIDL Customer Service Center at 833-853-5638 or emailing [email protected].