- New initiative from the U.S. Small Business Administration opens additional grant assistance to Targeted EIDL Advance applicants
- Businesses with 10 or fewer employees in low-income communities can receive $5,000 grant if they have suffered serious economic losses during the COVID-19 pandemic
- SBA also reopens Shuttered Venue Operators Grant program and partners with point-of-sale providers for upcoming Restaurant Revitalization Fund
Summary by Dirk Langeveld
The U.S. Small Business Administration has announced a new round of grants providing supplemental assistance to applicants in an existing program directing support to hard-hit businesses in low-income communities. The SBA says the program is its latest relief program launched through funding from the American Rescue Plan.
The SBA has also reopened its Shuttered Venue Operators Grant program to applications after technical issues closed it for more than two weeks. The agency is preparing to move forward with its Restaurant Revitalization Fund program to assist food and beverage businesses, and has struck an agreement with point-of-sale service providers to ease this process.
Supplemental Targeted Advances
Supplemental Targeted Advances will provide $5 billion to one million severely impacted small businesses and nonprofits. The program supplements the Targeted EIDL Advance program, which provides grants of up to $10,000 to businesses in low-income communities that can demonstrate an annual loss in gross revenues of at least 30 percent for any eight-week period after March 2, 2020.
SBA Administrator Isabella Casillas Guzman said the nation’s smallest businesses, especially those owned by minorities, have suffered the worst of the economic impact from the COVID-19 pandemic. In an effort to provide a financial boost to these businesses, the Supplemental Targeted Advances offers an additional $5,000 to companies in low-income communities with 10 or fewer employees who have suffered an annual economic loss of more than 50 percent.
Supplemental Targeted Advances are available even if a business has previously received the $10,000 maximum amount under the Targeted EIDL Advance program. Sole proprietors, independent contractors, and other non-employer firms are eligible, although the program does not extend to farmers and ranchers.
The SBA has modified its Targeted EIDL Advance application to determine if a business is eligible for a Supplemental Targeted Advance. The SBA will contact eligible businesses and process applications on a first-come, first-serve basis.
Business owners can use an SBA mapping tool to determine if their community is considered low-income. Questions on the program can be directed to TargetedAdvance@sba.gov or by calling 800-659-2955.
Shuttered Venue Operators Grant
After technical issues forced its application portal to shut down on April 8, the same day of its opening, the Shuttered Venue Operators Grant program has started taking submissions.
The application reopened on Saturday after a full overhaul, with the SBA intending to improve user experience and fix any lingering issues. The updates include waiting room technology to address the anticipated high demand for the program, features such as a new revenue chart and the ability to upload multiple attachments, and improved portal security.
SVOG is open to several arts and cultural entities, including live venue operators, performing arts organizations, museums, and movie theaters, as well as promoters, producers, and talent representatives. The program has $16.25 billion available to disburse.
Applicants can receive grants equal to 45 percent of their gross earned revenue in 2019, up to $10 million.
Restaurant Revitalization Fund
As the SBA prepares to accept applications for its Restaurant Revitalization Fund program, it has announced a set of partnerships that will allow eligible businesses to access the program’s application or the data necessary for the application through their point-of-sale service provider.
The SBA has partnered with Clover, NCR Corporation, Square, and Toast in this initiative. Individual providers are offering individualized assistance, including fully integrated application experiences or pre-packaged point-of-sale documentation, to help businesses prepare their application more quickly.
The Restaurant Revitalization Program will provide $28.6 billion in grants to businesses where “the public or patrons assemble for the primary purpose of being served food or drink.” Applicants can seek as little as $1,000 or as much as $10 million.
