The long-awaited second COVID-19 recovery package was signed into law December 27, 2020. The package includes a second round of funding for both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Advance Grant, though eligibility is more targeted for both programs. The new $10,000 Economic Injury Disaster Loan (EIDL) grants:Do You Qualify?
Here are some of the main takeaways from the COVID-19 Recovery 2.0 legislation that small business owners should know:
EIDL Advance Grant 2.0
Adds another $20 billion for EIDL Advance Grants. Eligible small businesses are able to receive additional funding if their first EIDL Advance Grant was under $10,000.
Businesses are eligible to receive an EIDL Advance Grant if they: a. Employ 300 employees or less; b. Demonstrate at least 30% reduction in gross receipts in any 8-week period between March 2, 2020 and December 31, 2021; and c. Are located in a low-income community, as defined for the New Markets Tax Credit (NMTC).
The SBA states that it will begin to switch to a new online Disaster Loan Assistance Portal on Friday, January 15, 2021 and expects the switch will be complete by Sunday, January 17, 2021.
Economic Injury Disaster Loan (EIDL) Advance Grant