April 30, 2021

SBA launches $5B grant program for small businesses. See who gets the money.

Small businesses and nonprofit groups hardest hit by the coronavirus pandemic now are eligible for…

Small businesses and nonprofit groups hardest hit by the coronavirus pandemic now are eligible for additional support under a $5 billion Small Business Administration program

The new round of Economic Injury Disaster Loan assistance, known as Supplemental Targeted Advances, is available for up to 1 million small businesses and nonprofits with no more than 10 employees.

Here’s who can get the money:

Aside from having no more than 10 employees, they must be located in low-income areas and had an economic loss of greater than 50% over an eight-week period since March 2, 2020, compared to the previous year. They can receive $5,000 in grants, meaning the money does not have to be repaid.

The funding was included in President Joe Biden’s $1.9 trillion coronavirus stimulus law.

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“Many of our nation’s small businesses are still struggling to recover from the economic impact of the COVID-19 pandemic, and we’ve found that the smallest businesses — the majority of which are minority-owned — are hurting the most,” SBA Administrator Isabella Casillas Guzman said.

The $5,000 grants are addition to the $10,000 many businesses received from earlier Economic Injury Disaster Loan funds.

The SBA will be contacting eligible small businesses.

SBA also has increased the maximum loan amounts for COVID-19 assistance to 24 months of working capital up to $500,000 from six months and $150,000.

For more information, businesses can contact the SBA at [email protected] or 1-800-659-2955.

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Jonathan D. Salant may be reached at [email protected]. Follow him at @JDSalant.

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