You Might Qualify for a Targeted EIDL Grant, but Applying for One Will Not Help
Waiting, uncertainty, and making decisions based on “what ifs” have taken up a large percentage of small business owners’ time during the COVID-19 pandemic. So much depends on what the federal government decides about the next short-term solution to the economic instability brought on by the pandemic. As more and more people get vaccinated against COVID-19, the economy is on the road to reopening, but access to basic necessities remains uncertain for millions of families, and numerous small business owners are still trying to decide whether to cut their losses or whether a new dawn for small businesses really is just around the corner. Just as the stimulus checks to individuals are a temporary solution but waiting to see if and when they are coming is nerve-wracking, emergency grants from the Small Business Administration (SBA) can temporarily sustain the businesses that need them the most. The SBA has announced plans to disburse another round of grants, but this program does not have its own application process. Meanwhile, a Washington DC small business lawyer can help you find other sources of funding.
Cash Advances for the Small Business Owners Who Need Them the Most
In January 2021, the SBA issued an update about $10,000 grants for certain participants in the Economic Injury Disaster Loan (EIDL) program, which originated as a provision of the CARES Act, the emergency legislation enacted in the early days of the COVID-19 pandemic. The SBA intends to disburse these $10,000 grants to the recipients that it determines have the greatest need for them, but it is not accepting applications or requests for these grants. Instead, the recipients will be small business owners who have previously applied for EIDL funding and whose applications show that the company’s income decreased by at least 30 percent during the first months of the pandemic.
The first round of EIDL funds ran out quickly, and the SBA intends for the targeted grants to benefit small businesses that missed out on some or all of the funds they needed during the first round of EIDL applications. In other words, it will give priority to businesses that applied for EIDL loans in 2020 and either did not receive any loan money at all, or else received a lesser amount than what they requested in the initial application. The SBA has reserved the grants for businesses operating in low-income communities.
If you are hoping for a targeted EIDL grant for your small business, the only thing to do is wait, since there is no application process for these grants. The SBA is, however, still accepting applications for new EIDL loans until the end of 2021.
Let Us Help You Today
The Washington DC small business lawyers at Tobin, O’Connor & Ewing can help you fund your small business through grants, loans, and profitable business decisions. Working with a small business lawyer can help your business project survive beyond the hard times of the pandemic.