Do I qualify for the new targeted EIDL grant?
Targeted EIDL advances (grants) are an extension of the emergency EIDL grants in the CARES Act, but the requirements are somewhat different.
Important: Only businesses that previously applied for an emergency EIDL advance (grant) and meet the new criteria will be eligible for the Targeted EIDL advance (grant).
To qualify for the full targeted $10,000 EIDL grant, a business must:
Be located in a low-income community, and
Have suffered an economic loss greater than 30%, and
Employ not more than 300 employees
In addition, the business must qualify as an eligible entity as defined in the CARES Act:
A small business, cooperative, ESOP Tribal concern, with fewer than 500 employees*
An individual who operates under as a sole proprietorship, with or without employees, or as an independent contractor; or
A private non-profit or small agricultural cooperative.
The business must have been in operation by January 31, 2020
The business must be directly affected by COVID-19
Economic loss is defined as “the amount by which the gross receipts of the covered entity declined during an 8-week period between March 2, 2020, and December 17, 2021, relative to a comparable 8-week period immediately preceding March 2, 2020, or during 2019.” The SBA will come up with a formula for seasonal businesses. SBA states that potentially eligible applicants “will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction.”
A low income community is defined in Section 45D(e) of the Internal Revenue Code of 7 1986 as follows:
“The term “low-income community” means any population census tract if the poverty rate for such tract is at least 20 percent, or in the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income.” (There are some additional ways areas may qualify as a low-income community in that reference.)
This tool from Census may help you understand if your business is located in a low-income community. However, we recommend you do not rely on it to determine if you qualify. The SBA states that “additional details on how SBA will identify low-income communities will be available soon on www.sba.gov/coronavirusrelief.”