SBA Grant Application Updates
Small businesses affected by COVID-19 may be eligible for a Targeted EIDL advance grant money of up to $10,000 small business grant, plus an additional targeted advance of $5,000. These grants do not have to be repaid. The SBA grant application is now encouraging all eligible companies to apply.
To be considered for any of these grants, your company must meet the eligibility requirements (see below) and apply for (or have applied for) an Economic Injury Disaster Loan (EIDL). However, you do not have to accept or accept the loan in order to receive the scholarship.
SBA Grant Application
The Small Business Administration has not yet allocated all of its $5 billion in grants for small business start up under its Supplemental Targeted Advances program in 2023 and continues to accept applications.
Launched last month, part of President Joe Biden’s $1.9 trillion coronavirus stimulus bill, the program is designed to benefit small businesses hardest hit by the coronavirus pandemic.
“We know how tough it was for small businesses,” said Rep. Andy Kim, D-3rd Dist., Member of the House Small Business Committee. “This is a grant, not a loan.
Many small businesses say we are in trouble, but the answer is not to take on new debt. We need help to get back on our feet. “That’s what this is about.”
Eligibility For SBA Grant Application
Due to COVID-19, small business owners and skilled farms in all states and territories are currently eligible for low interest subsidized and un-subsidized loan. Farms with 500 or fewer employees are now eligible due to a new authority granted by Congress in response to the pandemic.
Agricultural businesses grant includes companies engaged in the production of food and fiber, livestock, ranching, aquaculture, and all other agricultural and farming-related industries (as in Section 18 (b) of the Small Business Act (15 USC 647 (b.))).
To be eligible, the small business grant must have no more than 10 employees, be located in low-income areas and since the 2nd year compared to the previous year.
These eligible companies can receive $5,000 in grants, which means there is no need to return the money. These grants are in addition to the $10,000 many companies received from previous Economic Injury Disaster Loan Funds and their PPP loans. The program is aimed at up to 1 million small businesses and nonprofits.
SBA Grant Application During Corona Pandemic
“A lot of small businesses have struggled during COVID situation,” said Kim, “it’s just a difficult climate. For them it’s all about survival. “
The women of SBA contacts eligible for small business grant for women and invites them to apply for SBA Grant Application 2021.
Regardless, the SBA increased the maximum loan amounts for COVID-19 relief to 24 months of working capital up to $500,000 from six months and $150,000.
SBA Grant Application Details
| Purpose | To meet financial obligations and operating expenses that could have been paid if the disaster had not occurred |
| Loan Amount | For loans approved as of the week of April 6, 2021: 24 months of economic damage with a maximum loan amount of $500,000. For loans approved before the week of April 6, 2021, see Loan Increases. |
| Use Of Proceeds | Working capital and normal operating costs Example: continuation of health services, rent, ancillary costs, fixed debt payments. |
| Terms | I. 3.75% for businesses (fixed) II. 2.75% for nonprofits (fixed) III. 30 years IV. No pre-payment penalty or fees |
| Collateral Requirements | I. Required for loans over $25,000 II. SBA uses a General Security Agreement (UCC) that identifies business goods as security, such as machinery and equipment, furniture and fixtures, etc. |
| Maturity | 30 Years |
| Forgivable | NO – EIDL loan YES – EIDL advance payment * Advances have been fully allocated and are currently unavailable |
| Payments | The borrower can make payments if they choose to. Set up online payments through Pay.gov OR email payments to: US Small Business Administration 721 19th Street Denver, CO 80202 Be sure to include the EIDL loan number on the checks sent. |
SBA Grant Increases
Loans approved prior to April 7, 2021 for less than $500,000 are likely to be eligible for an increase based on the new loan caps announced on March 24, 2021 this time.
The SBA grant application is now emailing borrowers direct for more information on how businesses can apply for an increase.
Borrowers should expect to receive emails from @ sba.gov or @ updates.sba.gov addresses. *
(* Borrowers who have problems sending emails from the link in the message they received must remove any extra characters that may appear in front of the email address.)
If an applicant has accepted a loan for an amount less than the amount originally offered, the applicant has up to two years from the date of the loan agreement to apply for additional funds.
Applicants can apply for additional funds after the application deadline on December 31, 2021. Applications must be submitted in English. We provide documents in 17 different languages so you can understand admission requirements, fill out applications and answer frequently asked questions.
Conclusion
This SBA Grant Application provides economic relief to small businesses and nonprofits that are currently experiencing a temporary loss of income.
The SBA’s Protection Program, a separate fund created to help small businesses during the pandemic, ended in May. PPP loans were forgivable under certain conditions, including using 60% of the loan for payroll.
The program provided nearly $800 billion to over 8.5 million small businesses and nonprofits. In the PPP program, small businesses received loans through banks, while the EIDL program is run directly by the SBA without the banks being involved.