Earlier this week, we reported that the federal government repurposed over $17 billion from the Targeted EIDL grants for the new infrastructure proposal. While this has not passed Congress yet, if it does, the Targeted EIDL program will essential be drained of funds. The question remains, can businesses still receive the Targeted EIDL grants?
Will You Receive Your Targeted EIDL Grant?
The easy answer is yes. If you received an invitation from the SBA and have applied for the Targeted and Supplemental grants, you can still receive it. To date, the SBA has approved just over 331,000 Targeted EIDL advances and just over 254,000 Supplemental advances. On average, the SBA has been approving between 15,000 and 20,000 applications per week.
Funding for the Targeted EIDL and Supplemental EIDL advances still exists. IF the infrastructure proposal passes as written, the remaining funding will essentially be stripped away. That hasn't happened yet, so if you have already applied, you may still receive the advances.
Is It Worth Applying for EIDL Reconsideration?
Again the answer is yes. According to our recent poll, about 30% of businesses have been approved for an EIDL loan, another 30% are waiting for a decision, the rest (roughly 40-45%) have been denied or are in reconsideration.
The SBA has repeatedly encouraged businesses who were denied and believe they qualify for the EIDL program to apply for reconsideration. We created a reconsideration template that has been used by over 10,000 businesses so far.
We encourage all businesses who believe they qualify for the EIDL program to apply for reconsideration. The SBA has also stated numerous times that they plan on working through the backlog of applications by mid to late August. That means, if you have already applied for the EIDL program or for reconsideration, you should hear back within the next few weeks.
What is the Status of the Economy?
Nearly 1,000,000 jobs were added in July. This is good news for businesses who are looking for workers and for job seekers alike. The U.S is only 5.7 million jobs away from the pre-pandemic employment level. Many experts believe that unemployment will continue to fall.
The outlook is positive despite the spread of the delta variant, which has led to a new daily average of 100,000 cases, numbers the U.S. hasn’t seen since February 2021.
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