Another New SBA Funding Program You Should Be Aware Of (With A Bonus Resource Hidden Gem)

In early April, 2021 the U.S. Small Business Administration announced it was expanding the Economic Injury Disaster Loan (EIDL) and EIDL Advance program and as this last weekend, they announced another program that might help some arts and culture organizations.

The new programs are called the Targeted EIDL Advance and Supplemental Targeted Advance. Compared to the previous programs, these are actual grants and have more narrowly defined qualifications. Full program details per the SBA are below but I wanted to point out a hidden gem in that material by way of this remarkably useful interactive map they provide to help determine one of the key qualifications of being “located in a low-income community, as defined in section 45D(e) of the Internal Revenue Code.”

Located at https://sbaeidl.policymap.com/app, the map provides a wealth of data that could be rather useful when determining your own organization’s impact.


INVITATION TO SUBMIT APPLICATION FOR TARGETED EIDL ADVANCE AND SUPPLEMENTAL TARGETED ADVANCE

The SBA is launching a new round of Economic Injury Disaster Loan (EIDL) Advances – called the Targeted EIDL Advance and Supplemental Targeted Advance. The Targeted EIDL Advance provides eligible businesses with $10,000 in total grant assistance. If you received the EIDL Advance last year in an amount less than $10,000, you may be eligible to receive the difference up to the full $10,000. The combined amount of the Targeted EIDL Advance and any previously received Advance will not exceed $10,000.

The Supplemental Targeted Advance provides the smallest and hardest hit eligible businesses with a supplemental payment of $5,000. Even if you have previously received the original EIDL Advance in the full amount of $10,000, you may be eligible for the Supplemental Targeted Advance if you meet eligibility criteria. The combined amount of the Supplemental Targeted Advance ($5,000) with any previously received EIDL Advance or Targeted EIDL Advance ($10,000) will not exceed $15,000.

Important: Please review the eligibility criteria and application instructions below carefully before you proceed to the application portal for the Targeted Advance. The eligibility criteria for the Targeted EIDL Advance and the Supplemental Targeted Advance are slightly different.

Businesses eligible for the Targeted EIDL Advance must meet ALL the following eligibility criteria

  • Located in a low-income community, as defined in section 45D(e) of the Internal Revenue Code. The SBA will map your business address to determine if you are in a low-income community when you submit your Targeted EIDL Advance application.
  • Suffered economic loss greater than 30 percent, as demonstrated by an 8-week period beginning on March 2, 2020, or later, compared to the previous year. You will be required to provide the total amount of monthly gross receipts from January 2019 to the current month-to-date.
  • Must have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. However, agricultural enterprises, such as farmers and ranchers, are not eligible to receive the Targeted EIDL Advance or the Supplemental Targeted Advance.

Businesses eligible for the Supplemental Targeted Advance of $5,000 must also meet ALL the following eligibility criteria:

  • Located in a low-income community, as defined in section 45D(e) of the Internal Revenue Code. The SBA will map your business address to determine if you are in a low-income community when you submit your Targeted EIDL Advance application.
  • Suffered economic loss greater than 50 percent, as demonstrated by an 8-week period beginning on March 2, 2020, or later, compared to the previous year. You will be required to provide the total amount of monthly gross receipts from January 2019 to the current month-to-date.
  • Must have 10 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. However, agricultural enterprises, such as farmers and ranchers, are not eligible to receive the Targeted EIDL Advance or the Supplemental Targeted Advance.

Before You Apply: To help applicants determine if they are located in a low-income community, as defined in section 45D(e) of the Internal Revenue Code, the SBA is making available a mapping tool at https://sbaeidl.policymap.com/app. Note that the business address must be located in a low-income community to qualify for the Supplemental Targeted Advance. You are encouraged to check the map to see if your business address meets the low-income community eligibility requirement before you apply.

What You Will Need: To assist you in completing the Targeted Advance questions, we recommend that you have available a copy of your 2019 Federal Tax Return and the business’ monthly gross receipts for each month from January 2019 through the most recent month-to-date period. The information you provide will be used to determine if your business meets the economic loss requirements above. You will also be asked to confirm that the information provided in your original EIDL application is still accurate. If there are any changes, you may be asked to provide documentation to determine if you are eligible for the Targeted EIDL Advance and/or the Supplemental Targeted Advance. Applicants that pass the initial eligibility requirements will also be required to electronically sign an IRS Form 4506-T allowing the SBA to obtain tax transcripts directly from the IRS before we can approve your request.

The SBA’s goal is to process all requests within 21 days of receiving a completed application. All application decisions will be communicated via email. If your request is approved, you will receive an email notification and an ACH deposit to the bank account you provided in your application. It is very important that you double-check your bank account information carefully before submitting. Incorrect or incomplete information may result in an inability to approve your request or successfully disburse your funds. Carefully review the information below regarding bank account deposits.

  • Double check that your account number and routing number are correct. They should be located at the bottom of your checks, if available. Log into your online banking account and locate that information there or contact your bank for confirmation.
  • Make sure that the routing number provided is usable for ACH payments. Many Advance applicants submitted routing numbers reserved for other types of payments which resulted in the inability to send them an Advance.
  • Bank name should be the official name of the bank; please contact your bank if you are unsure.
  • Ensure you provide a checking account to facilitate the ACH payment.
  • Double check that your account is still open and able to receive payments.
  • Before submitting, you must make sure that the bank account you are providing satisfies the following:
    • Account is opened using your business legal name matching the values entered in the business information section on your application. If you do not have a business legal name, the name on the account must match the business owner’s name.
    • Account has your business address and phone number matching the values entered in the business information section on your application.
    • Account is opened using your business tax id (EIN or SSN if no EIN registered) matching the values entered in your initial application.
  • Common reasons why the account validation might fail would be the account holder name does not match the business name on the application, the business name changed since opening the account, using a personal account for business, account being in someone else’s name such as a spouse or friend, or reusing a bank account for multiple businesses that do not match the business name on the application.
  • If you do not have a bank account that satisfies the criteria above, there is a greater chance that the SBA will not be able to approve your Supplemental Targeted Advance.

For more details about the SBA’s COVID-19 Economic Injury Disaster Loan and Advance programs, please visit SBA.gov/eidl. If you have additional questions regarding this matter, please contact us at 800-659-2955 (TTY: 1-800-877-8339).

About Drew McManus

"I hear that every time you show up to work with an orchestra, people get fired." Those were the first words out of an executive's mouth after her board chair introduced us. That executive is now a dear colleague and friend but the day that consulting contract began with her orchestra, she was convinced I was a hatchet-man brought in by the board to clean house.

I understand where the trepidation comes from as a great deal of my consulting and technology provider work for arts organizations involves due diligence, separating fact from fiction, interpreting spin, as well as performance review and oversight. So yes, sometimes that work results in one or two individuals "aggressively embracing career change" but far more often than not, it reinforces and clarifies exactly what works and why.

In short, it doesn't matter if you know where all the bodies are buried if you can't keep your own clients out of the ground, and I'm fortunate enough to say that for more than 15 years, I've done exactly that for groups of all budget size from Qatar to Kathmandu.

For fun, I write a daily blog about the orchestra business, provide a platform for arts insiders to speak their mind, keep track of what people in this business get paid, help write a satirical cartoon about orchestra life, hack the arts, and love a good coffee drink.

Related Posts

GET SOCIAL

1.8kFriends
4.2kFollowers
975Followers
7.2kSubscribers
14.3kFans Love Us

TWO WAYS TO SUBSCRIBE BY EMAIL:

weekly summary subscription
every new post subscription

The Performing Arts Org Vax Policy Database

Find vaccination requirements by organization and sector along with policy links and a form to add your organization to the database.

Add Your Org

Another New SBA Funding Program You Should Be Aware Of (With A Bonus Resource Hidden Gem)

Send this to a friend