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  • Gina Tabonares-Reilly

SBA launches supplemental relief for small businesses affected by pandemic

Guam's small businesses with 10 employees or less will get another opportunity to receive recovery assistance under the U.S. Small Business Administration's new round of Economic Injury Disaster Loan (EIDL) assistance.

Called Supplemental Targeted Advances, the new federal program launched on April 22 will provide $5 billion in additional assistance to 1 million small businesses and nonprofit organizations across the United States that have been most severely affected by the economic effects of the Covid-19 pandemic.

The Supplemental Targeted Advance program is the latest SBA relief program to launch as part of the American Rescue Plan Act on March 11.

“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," said SBA Administrator Isabella Casillas Guzman.

Guzman said the latest program aims to reach those businesses with 10 employees or less who need SBA's help to ensure that no small business falls through the cracks or gets left behind.

"This program is a crucial part of our efforts to bring businesses back, create jobs and build an equitable economy for everyone," Guzman said.

This additional relief to the smallest and hardest hit businesses builds on SBA's April 6 action to significantly increase the maximum loan amounts for Covid-19 EIDL assistance from six months of working capital with a maximum of $150,000 up to 24 months of working capital and a maximum of $500,000.

SBA also announced on March 12 that the agency would extend deferment periods for all disaster loans, including Covid-19 EIDLs, until 2022 to provide more time for businesses to build back.

Effective April 22, the SBA modified the Targeted EIDL Advance application process to determine if businesses also qualify for the additional $5,000 that does not have to be repaid.

According to SBA's website, even those who have previously received the original EIDL Advance in the full amount of $10,000 may be eligible for the Supplemental Targeted Advance if they meet eligibility criteria.

"The combined amount of the Supplemental Targeted Advance ($5,000) with any previously received EIDL Advance or Targeted EIDL Advance ($10,000) will not exceed $15,000," SBA said.

SBA will contact eligible business entities to apply and applications will be processed on a first-come, first-served basis. To qualify for the Supplemental Targeted Advance, an eligible business entity must be in a low-income community, suffered greater than 50 percent economic loss, and have 10 or fewer employees.


Before applying, businesses are advised to check the following eligibility criteria:

  • The business must be located in a low-income community. Use this mapping tool to see if your business is in a low-income community as defined in section 45D(e) of the Internal Revenue Code. The business address must be in a low-income community to qualify, so SBA encourages you to check the map before you apply; and

  • Can prove more than a 50 percent economic loss during an eight-week period beginning on March 2, 2020, or later, compared to the same period of the previous year. Applicants need to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) from January 2019 to the current month-to-date; and

  • Has 10 or fewer employees. This includes sole proprietors, independent contractors, private nonprofit organizations, and others that usually qualify for the EIDL program. However, agricultural businesses, such as farmers and ranchers, are not eligible for the Supplemental Targeted Advance. Farmers and ranchers may still apply for loan assistance through the Covid-19 EIDL program.

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