DALLAS (CBSDFW.COM) – The federal government still has billions of dollars in Covid aid for small businesses in low-income areas.
Tens of thousands of business owners in North Texas are likely eligible for federal grants of up to $ 10,000, but few have applied.
The US Small Business Administration has sent emails to over 11.8 million small businesses urging them to request targeted EIDL advances.
Only companies that receive an invitation can apply.
So far, less than one in five businesses that have received an invitation email have applied and far fewer have received funding.
Only $ 2.25 billion of the $ 30 billion allocated for EIDL’s targeted advances made it into the hands of struggling business owners.
âThere is still a lot of money and there are small businesses that are still struggling,â said Herbert Austin, district manager for the SBA.
While most Texas businesses are fully open, many are still struggling to recoup all of their losses from last year.
Austin said he believed one of the main reasons more and more companies had not applied for grants was that they mistook the SBA’s email invitation for a scam.
” There is no doubt. People tell us, âOh, I think I saw an email, but I didn’t bother to look at it because I thought it was a scam,â Austin explained.
Every fortnight, the SBA announced that it would send millions of small business owners an email inviting them to apply for the grants.
Businesses must have previously applied for an EIDL and be located in a designated low-income area to be eligible.
Only small businesses that receive an invitation can apply.
To be eligible, applicants must have 300 or fewer employees in a low-income community.
Business owners must also show a decrease of more than 30% in their income in any eight week period since the start of the pandemic.