Businesses located in high-income areas not likely to qualify for SBA's EIDL

Updated: Apr 12



Small business owners operating in Tumon -- and other locations on Guam that are not marked "low-income community" -- are not likely to qualify for the U.S. Small Business Administration's Covid-19 Targeted Economic Injury Disaster Loan.


The new round of EIDL, into law on Dec. 27, 2020 as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits and Venues Act, applies more defined eligibility criteria than the first similar program under CARES Act.


One of the requirements is that the business must be located in a low-income community as defined by the Internal Revenue Code. Based on the mapping tool, a business' eligibility may depend on where its business site falls in the census tract.


Guam is divided into approximately 38 census tracts and only 17 were marked "low-income community."


Most areas in the central part of the island such as Tamuning, Hagatna and Tumon do not fall in the low-income category.

According to SBA, the Targeted EIDL Advance provides businesses located in low-income communities with additional funds to ensure small business continuity, adaptation and resiliency.

Advance funds of up to $10,000 will be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding.

In order to qualify, a business must also demonstrate more than 30 percent reduction in revenue during an eight-week period beginning on March 2, 2020, or later.


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"If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30 percent reduction," SBA said in its announcement,

SBA said it will reach out to those who previously applied for EIDL assistance but did not receive an EIDL Advance due to lack of program funding.


These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation.


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The new EIDL has lowered the business staffing threshold for qualification. The program applies to businesses that have 300 or fewer employees.


Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors and private, nonprofit organizations.


Agricultural enterprises are not eligible.


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