In response to the continued devastation of COVID-19 that has left many businesses and nonprofits shuttered, the Small Business Administration launched a new round of Economic Injury Disaster Loan (EIDL) Advances. This new grant was signed into law on Dec. 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. This new version of the EIDL is called the Targeted EIDL Advance. Billions of dollars will be directed towards our nation’s hardest-hit businesses to support the continuity, adaptation, and resiliency of these businesses.
Are real estate investors eligible?
Some of the hardest-hit businesses may be those that involve real estate. As with the initial EIDL grant, certain real estate activities are ineligible, namely those deemed passive real estate businesses otherwise known as "speculative real estate businesses." The SBA also states that investment activities are ineligible. That means if you're a real estate investor, you are ineligible for this stream of funding.
The eligible category includes but is not limited to owners of hotels, rental property, recreational facilities, charter boats, restaurants, retail shops, and travel agencies, as well as manufacturers, sports vendors, and wholesalers. So, if you fall into the eligible category, you're in luck!
You may be eligible for the Small Business Administration’s Targeted EIDL Advance. Keep in mind, however, that meeting the eligibility for the Targeted EIDL is slightly more stringent than the previous EIDL Grant.
To be eligible for the Targeted EIDL Advance, you must fit ALL the criteria outlined below:
- Your business must be in a low-income community.
- Your business must have suffered an economic loss greater than 30%. The SBA requires you to demonstrate the economic loss by comparing income from the prior year to this year, using an eight-week period beginning March 2020 or later. You will also be required to provide the total monthly gross receipts from January 2019 up to the current date.
- Your business must have fewer than 300 employees.
Additionally, the SBA may require you to submit tax information from the prior year. You may be required to send the SBA form 4506-T, Request for Transcript of Tax Return.
How much is the targeted advance?
If you meet the specifications outlined above, your business may be eligible for up to $10,000 in grant assistance. If in the prior year you received the EIDL of less than $10,000 and you meet the Targeted EIDL Advance eligibility requirements, you may be eligible to receive the difference up to the full $10,000. Note that the combined amount of the Targeted EIDL Advance and any previously received advance shall not exceed $10,000.
How to apply
If you're eligible, you don't need to take any action to receive the Targeted EIDL. The SBA will contact eligible recipients directly. The SBA started this targeted email campaign on Feb. 1, 2021. So, if you think you're eligible, keep an eye on your inbox. The SBA could send you a "targeted email" inviting you to apply for the EIDL grant from an email address ending with sba.gov. Only respond to emails from an sba.gov account. If you suspect you've been contacted by a fraudulent account, you should immediately report this activity to the Office of the Inspector General .
The Millionacres bottom line
Maintaining economic stability during this pandemic has been a difficult feat, especially for small-business owners. Our nation’s small businesses are one of the cornerstones of our economy and have been hit hard by the residual impact of the pandemic. To help weather the storm, the SBA will issue emergency funds to those hardest hit by this crisis. If you're eligible and the SBA sends you a targeted email, fill it out as soon as possible so your business can receive the support it needs to navigate through this difficult time.