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  • Trey Whitt

SBA Targeted EIDL Advance


Many of you are receiving emails from SBA like this one that are promoting targeted advance payments that do not need to be repaid. If you have already applied for an Economic Injury Disaster Loan (EIDL), it might be worth your time to investigate your eligibility for these advance payments. If you have not applied for EIDL, the loan terms are appealing and certainly merit consideration.

Below are the advance payment eligibility requirements directly from the EIDL website.

Targeted EIDL Advance ($10,000)

  • Are in a low-income community. To help applicants determine if they are in a low-income community as defined in section 45D(e) of the Internal Revenue Code, a mapping tool is available. The business address must be in a low-income community to qualify so SBA encourages potential applicants to check the map to see if they meet the low-income community eligibility requirement before they apply; and

  • Can demonstrate more than 30% reduction in revenue during an eight-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they 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; and

  • Have 300 or fewer employees.

Supplemental Targeted Advance ($5,000)

  • Is located in a low-income community. Use this mapping tool to see if your business is in a low-income community as defined in section 45D(e) of the Internal Revenue Code. The business address must be in a low-income community to qualify, so SBA encourages you to check the map before you apply; and

  • Can prove more than a 50% economic loss during an eight-week period beginning on March 2, 2020, or later, compared to the same period of the previous year. Applicants need to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) from January 2019 to the current month-to-date; and

  • Has 10 or fewer employees.

Next Steps

  • Check the SBA map to determine if your business is in a low-income community.

  • You will easily meet the headcount ceiling for the $10,000 advance, but check your employee numbers for the supplemental advance.

  • The eight-week period that will result in your largest revenue reduction will likely be March 16, 2020 thru May 8, 2020. Most of you will easily meet the 30% reduction threshold during this measurement period, but you may meet the 50% threshold as well. If you are running QuickBooks Online or QuickBooks Desktop, you can run a profit and loss comparison report for that period and quickly determine your eligibility.

If you have any questions, please let me know. I am learning right alongside you on this one, but I am glad to help in any way that I can.


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