Emergency Advance Grant: Everything You Need to Know
As you may know, The Small Business Administration (SBA) is providing financial solutions to businesses through The CARES Act. Among these options is the Emergency Advance Grant, which goes up to $10,000 and doesn’t need to be repaid.
If you’re in need of fast financing due to COVID-19, this may be a great way to support your business. In this post, we’ll provide the information you need to know about qualifying and applying for this financing. We’ll continue to update this post as additional information becomes available.
What Business Owners Should Know About the Emergency Advance Grant:
1. Who Qualifies?
If your business has been economically affected by COVID-19, you may qualify for this financing program. Currently, applicants must have less than 500 employees. This includes independent contractors, sole proprietors, non-profits, veteran organizations, and self-employed individuals.
However, some businesses in certain industries can still qualify if they employ more than 500 people. You can find more information about the SBAs size standards here.
2. How Can This Grant Be Used?
This grant can be used for debt that can’t be repaid due to COVID-19. In addition, it can be used for materials, paid sick leave, and payroll. If you utilize the grant for these expenses, it doesn’t have to be repaid.
3. How Can You Apply?
To apply for this grant, complete the SBA’s online application for the Economic Injury Disaster Loan. On the application, you’ll be asked if you’re applying specifically for the Emergency Advance Grant.
4. What is The Funding Timeline?
According to the SBA, financing will be in the recipient’s account within three business days of application submission. However, recent applicants are reporting that isn’t the case. We’ll review this further in the section below.
5. What’s the Feedback from Applicants Thus Far?
Unfortunately, this advance program isn’t without its issues. Since the SBA started accepting applications, business owners are complaining that they have yet to receive their advances within the expected timeframe. The SBA has stated that the surge of applications has led to obstacles in providing the financing.
Another complaint thus far is that some business owners aren’t getting approved for $10,000, instead being told that the approved amount is contingent upon their number of employees. Therefore, businesses with less than 10 employees may receive significantly less funding than they expected and need to keep their business afloat.
6. What Are the Other Financing Options Offered Through The CARES Act?
In addition to the grant, small business owners can pursue the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL), The Small Business Debt Relief Program, and SBA Express Loans. To learn more about these options, check out our full guide here.
Understandably, it can be frustrating to apply for financing and not receive it as expected. While it’s unclear how the Emergency Advance Grant process will evolve in the coming weeks, it’s worth reviewing your business’s finances and determining if it’s worth your time to apply.
In addition, don’t forget to check out the other financing options included in The CARES Act. It’s important to be aware of all your options, and to do this as soon as possible. This financing is first come, first serve.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.