$10,000 COVID grant for small businesses: How to Apply?Updated a month ago
During the COVID-19 pandemic, various financial assistance programs, including grants of up to $10,000, were introduced to support small businesses facing economic hardships.
One notable program was the COVID-19 Economic Injury Disaster Loan (EIDL) Advance, administered by the U.S. Small Business Administration (SBA).
Eligibility Criteria
To qualify for the EIDL Advance, businesses had to meet specific criteria:
Business Size: Eligible applicants included small businesses, private non-profits, and cooperatives with fewer than 500 employees. Sole proprietors, independent contractors, and certain self-employed individuals were also eligible.
Operational Status: Businesses must have been in operation before January 31, 2020.
Economic Impact: Applicants needed to demonstrate that they had suffered substantial economic injury due to the COVID-19 pandemic.
Application Process
The application process for the EIDL Advance was designed to be straightforward:
Online Application: Applicants completed a streamlined online application through the SBA's website.
Self-Certification: Businesses self-certified their eligibility under penalty of perjury.
Advance Request: Within the EIDL application, applicants could request an emergency advance of up to $10,000.
It's important to note that as of January 1, 2022, the SBA stopped accepting new applications for COVID-19 EIDL loans or advances.
Required Documentation
To expedite the process, the CARES Act waived several standard requirements:
Personal Guarantee: No personal guarantee was required for advances and loans up to $200,000.
Operational History: Businesses did not need to have been in operation for more than one year.
Credit Elsewhere: The requirement that applicants could not obtain credit elsewhere was waived.
Applicants were primarily evaluated based on their credit score, and tax documentation was not initially required.
Payment Details
The EIDL Advance functioned as a grant:
Advance Amount: Eligible businesses could receive an advance of up to $10,000.
Non-Repayable: The advance did not need to be repaid, even if the applicant was subsequently denied an EIDL loan.
Usage of Funds: The advance could be used for various operational expenses, including:
Providing paid sick leave to employees unable to work due to COVID-19.
Maintaining payroll during business disruptions.
Meeting increased costs arising from supply chain disruptions.
Making rent or mortgage payments.
Repaying obligations that could not be met due to revenue loss.
Conclusion
The EIDL Advance program was a critical component of the federal government's efforts to support small businesses during the COVID-19 pandemic. By providing immediate, non-repayable funds, it helped many businesses navigate unprecedented challenges.
While the program is no longer accepting new applications, it serves as a model for rapid financial assistance in times of economic crisis.