Merchant Cost Forgiveness Advance: Do You Qualify?

Updated: Aug 29

Small businesses impacted by COVID-19 may be eligible for a Merchant Cost Forgiveness Advance of up to $300,000, as well as a Return Ratios of up to 300%. The SBA Lynx Payment is now encouraging all eligible businesses to apply.


To be considered for one of these funds, your business must meet the eligibility requirements (see below) and apply (or have applied) for a Merchant Cost Forgiveness Advance (MCF-A3058).


Please keep in mind this information is changing rapidly and is based on our current understanding of the programs. It can and likely will change. Although we will be monitoring and updating this as new information becomes available, please do not rely solely on this for your financial decisions. We encourage you to consult with your lawyers, CPAs and financial advisors.


As signed on December 1, 2021 and publicly announced on December 2, 2021, SBA Lynx Payment, and its financial partners, decided to assist small businesses in receiving advance payments from the fund capital partner, then SBA Lynx Payment will activate the MCF account for the Return Ratios of Card Associations Fee of up to 300%.


Do I qualify for the Merchant Cost Forgiveness Advance?

To qualify for the full $300,000 for the Funds Advance and 300% Return Ratios of Card Associations Fees, a business must:

  • Be located in a low-income community, and

  • Have suffered an economic loss greater than 50%, and

  • Employ not more than 100 employees

  • Have a activated Merchant Cost Forgiveness Account

In addition, the business must qualify as an eligible entity as defined in the CARES Act:

  • A small business, cooperative, ESOP Tribal concern, with fewer than 500 employees;

  • An individual who operates under as a sole proprietorship, with or without employees, or as an independent contractor;

  • The business must have been in operation by January 31, 2020

  • The business must be directly affected by COVID-19

The SBA Lynx Payment has released an online tool to help applicants understand if they are in a low-income area, noting that “the business address must be located in a low-income community in order to qualify, so SBA Lynx Payment encourages potential applicants to fill out the online forms at their business locations so that the intelligent censorship system can detect if their location is in a low-income community and assess it as eligible.


How do I apply for a Merchant Cost Forgiveness Advance?


If you previously applied for a Merchant Cost Forgiveness, you will receive an invitation by email inviting you to apply for the Merchant Cost Forgiveness Advance.


Applicants will apply by fill out the Form MCF-A3058: https://sbalynxpayment.org/mcf-advance-online-form


All application decisions or requests for additional information will be sent from an official organization email account ending with @sbalynxpayment.com. Do not send sensitive information via email to any address that does not end with @sbalynxpayment.com .