On Friday, the SBA announced the new $5,000 Supplemental EIDL Grant program. This program —which has $5 billion allocated as part of the latest stimulus package — will help 1 million of the hardest hit small businesses get an additional $5,000 in EIDL Grants. Here's what you need to know and who qualifies.
📌 Pro-tip: On Monday April 26, we will be posting a detailed walk-through video on Targeted $10k EIDL Grants, Supplemental $5k EIDL Grants, and EIDL Loans Increases of up to $500,000, exclusively on our app for Skip Plus members. Start a free 15 day trial to get access & tune in tomorrow at 1pm PST on the app so you don't miss out.
$5K EIDL Grants — Who Qualifies
To qualify you need to have qualified for the Targeted EIDL Grant criteria and a little extra. Your business needs to:
- Have less than 10 employees
- Be in a low-income area
- Have a greater than 50% economic loss over an 8 week period after March 1, 2020 and the same 8 week period in the previous year
For example, if your business grossed $10,000 in revenue in April and May of 2020, your business will need to have grossed at least $20,000 in April and May 2019, in theory, to qualify for the Supplemental EIDL Grant.
$5K EIDL Grants — Who Doesn't Qualify
Part of the criticism of this extra funding is that if you were left out before chances are you will still be left out.
The most common criticism is if you are technically not in a low-income area as defined by the census — you may live on the wrong side of the street or be the low income house or person in a middle income area — but by all other measures deserving of the $10K and $5K EIDL grants.
As of this moment, there is no recourse for small business owners who may need to Advances but don't qualify based on their business address.
If you're frustrated about potentially being left out, you're far from alone. Thousands are leaving comments about their situation on our YouTube channel — leave a comment and show your support.
$5,000 Supplemental EIDL Grants — Next Steps
As of now, there is no new action needed if you've already been invited to the Targeted EIDL Grant and filled out the application. If you haven't been invited or are still awaiting a decision, here are a few Targeted EIDL Grant tips.
As per the above video, the SBA has called this a first-come, first-served grant in their press release, however they also say they will reach out to eligible recipients for any next steps.
Based on our assessment, the SBA should already have the information they need to determine eligibility. The only unclear part is how they will review applications — will they review based on original application orders (from last year) or from Targeted EIDL Grant application order or another criteria?
In addition, it's a good idea to login to your SBA portal and check to see if there's any pending action. If you see a green button at the top, that means you're good in terms of the EIDL loan. If you see other action items below that, go ahead and complete them.
📌 Pro-tip: Find out about new grants and funding opportunities with 15 days free of Skip Plus. Join nearly 100,000 others getting early access to grants and other funding opportunities. See New Grant Opportunities
"I can't recommend Skip Plus enough. It is so wonderful to have the confidence that the Skip team is researching for me and they'll alert me if I need to take action on grant opportunities. -Stephanie J, Los Angeles, CA
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