How to Apply Targeted EIDL Advance Grant – The COVID-19 Targeted EIDL Advance was signed into law on 27th December 2020. The 2021 EIDL Advance was available to the previous recipients of the EIDL grant who received less than $10,000 advance in the first round of COVID EIDL grant funding in 2020.
On 1st January 2022, the SBA stopped accepting new applications for COVID EIDL loans and advances but continued to process the previously submitted applications. In May 2022 the program ran out of funds and SBA stopped processing all COVID-19-associated applications, increase and reconsideration requests. The best thing about these grants is that they are not required to be paid.
A lot of small businesses impacted by the COVID-19 pandemic were able to receive grants up to $10,000 through Targeted EIDL Advance Grant opportunities including Supplemental Targeted Advance Grants of $5000. Even though the COVID-19 EIDL and grant programs have been closed to new applications, the disaster loan programs and grants are available today. This article will throw light on details of the Targeted EIDL Advance Grant when it was still open for applications as well as the other alternatives that you can apply for today.
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Highlights of this Post
What Is An Economic Injury Disaster Loan (EIDL)?
Economic Injury Disaster Loans by SBA are for businesses that have experienced financial losses. The CARES Act modified the Economic Injury Disaster Loan Program making it easier for small business owners to qualify and get emergency cash advances up to $10,000. The loan assists up to $150,000 for businesses however the actual amount you can borrow will be based on the economic injury and the funds can be used to pay fixed dates, payroll, accounts payable or as working capital.
The money can’t be used to replace the lost sales, pay-down long-term debt or expand the business. The interest rate for economic injury loans presently is 3.75% for small businesses and 2.75% for nonprofit organizations and the repayment period can extend up to 30 years.
Following are the eligibility criteria for the SBA Disaster Loan
- Applicant is a business including an aquaculture, agricultural cooperative, producer cooperative or enterprise nursery that is small under SBA standard
- Applicant is a cooperative or business with not more than 500 employees
- Applicant is an individual who operates under a sole proprietorship with or without employees or as an independent contractor
- Applicants must meet their credit score requirements
- Applicants must be located in a declared disaster area.
There are exceptions for specific industries and you can use the size standard tool from SBA to know if your business qualifies for this loan. While the COVID-19 Disaster Loan applications are closed you can apply for the disaster loan online or through mail or impersonate a disaster recovery center if you’re living in a declared disaster area.
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What Was The Targeted EIDL Advance Grant Program?
Businesses that applied for the COVID-19 Economic Injury Disaster Loan EIDL (now ended) were also eligible to receive assistance up to $15,000 in funding from SBA which was not required to be repaid. This form of assistance was referred to as ‘advances’ since it was similar to any grant program without the general requirements that come with a government grant in the United States.
The Targeted EIDL Advance helped applicants with funding in the range of up to $10,000 if they belonged to a low-income community and demonstrated more than a 30% loss in revenue during an 8-week. Starting from March 2, 2020 or later and had less than 300 employees. It is important to note that SBA is no longer accepting new applications or revaluation requests.
However, you can continue to receive funding options for small businesses including the traditional SBA loans. The 2021 EIDL Advance Grant from SBA was as large as $10,000 and was restricted to previous EIDL grant applicants who had received less than $10,000 in the first round of EIDL grant funding in the year 2020. SBA reached out to businesses directly who did not apply for the 2021 EIDL grant.
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How Could Businesses Qualify For The Targeted EIDL Grant?
The COVID-19 Targeted EIDL Grant is completely different from the EIDL and is not associated with the former EIDL Advance which is no longer available now. The targeted EIDL Advance was signed into law on 27th December 2020 as a part of the Consolidated Appropriation Act 2021 and assisted targeted businesses situated in low-income communities with up to $10,000 in additional funding to make sure small businesses could continue their business operation.
The program provided a total of $10,000 in forgivable funds to the applicants who could fulfill the following eligibility criteria
- Must be located in a low-income community as defined by Section 45 DE of the Internal Revenue Code
- Must demonstrate more than 30% loss in revenue during an 8-week starting from March 2, 2020 or later
- Must not employ more than 300 employees
- Has previously received EIDL Advance for less than $10,000
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In addition, the business could qualify as an eligible entity as described in the CARE Act.
- A person who operates under a sole proprietorship with or without employees or as an independent contractor
- A small business, cooperative, ESOP tribal concern with less than 500 employees
- The business must be directly affected by COVID-19 pandemic
- The business must have been in operation by 31st January 2020
To qualify for Targeted EIDL Grant business had to be located in a low-income community in America and SBA encouraged potential candidates to meet the low-income community criteria before applying for this program.
What was the List Of Documents Required For the Targeted EIDL Advance Grant?
Following is the list of documents required For the Targeted Advance Program
- Contact information and personal details of the business owner
- Business statement
- Business legal name, trade name and tax identification number
- Total non-profit operational cost, amount of lost rent due to COVID-19, cost of goods sold, gross revenue and other pertaining financial information
- The bank name, account number and routing number
- Legal name, Title, Social Security card, ownership percentage of the company, place of birth, date of birth, and residential street address of every business owner of the company applying
- Statement of the relief
- Reason for business loss
- Document stating the location and branch of the business
What Was The $5000 Supplemental Targeted Advance Program?
The Supplemental Targeted Advance Program was an initiative that provided supplemental payment worth $5000 to businesses that were not required to be repaid. The combined amount of $5000 Supplemental Targeted Advance Program with the previously received Targeted EIDL advance or EIDL advance program of $10,000 did not exceed more than $15,000.
The American Rescue Plan had included $5 million in funding for the Supplemental Targeted Advances Grants program for businesses that were hit by the COVID-19 pandemic. The legislation states that the grant award worth $5000 was awarded to covered businesses that:
- Had 10 or less employees
- Had incurred an economic loss of more than 50% during an 8 week period starting from March 2, 2020 or later
- Must be located in a low-income community as determined by Section 45 DE of the Internal Revenue Code
This grant was available to hardest-hit businesses in addition to the Targeted EIDL Advance grant of $10,000. The SBA reached out to small business entrepreneurs who applied for the Targeted Advance Program to help them with the Supplemental Grant.
How Businesses Could Apply For Targeted EIDL Grant?
Businesses that applied for an Economic Injury Disaster Loan received an invitation from SBA that invited them to apply for the EIDL Targeted Grant. On fulfilling the eligibility criteria the business entrepreneurs were invited to apply for the Targeted Advance Program. SBA instructed businesses to watch out for scams and advised that all communication from SBI would have been sent from an official government email with @sba.gov ending.
The ideal grant or loan previously received by eligible businesses would have been subtracted from the $10,000 EIDL Grant.
Businesses that never applied for the EIDL grant and loan program were invited to apply at sba.gov. For the COVID-19 pandemic loans businesses were eligible to apply through 31st December 2021 depending on the availability of funds. If it appeared that a business was qualified for the Targeted Advance Program or Supplemental Assistance Program then they were invited to apply. The Targeted EIDL Program is closed to new funding and/ or applications.
Is The EIDL Advance Grant Still Available?
The Targeted EIDL Advance Grant Program (both grants and loans) are not available today and have been closed to new applications. All the information referred to in this article throws light on the COVID-19 EIDL program when it was open for applications. You cannot apply for the SBA EIDL Advance program which stopped accepting applications back in 2022.
The EIDL Advance Program ran out of funds on 6th May 2022 and so it is not processing the previously submitted applications nor it is accepting loan increase requests or requests for reconsideration of previously declined loan applications.
However, you can apply for alternative grant programs for your business. If your business is located in the disaster area you can be eligible to apply for a regular Economic Injury Disaster Loan from SBA. It provides low-interest loans that are separate from Targeted EIDL grants and limited to businesses that are situated in officially declared disaster areas.
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Are EIDL Grants Taxable?
A lot of people are willing to know whether EIDL grants are taxable or not. Fortunately legislation declared that the EIDL grants are not taxable at the federal level so businesses who receive the grant will not be denied any tax deduction for eligible expenses paid for with the fund and thus the EIDL grant will not be deducted for loan forgiveness purposes from PPP. This applies to all EIDL grants including those for which you have already received.
What Are The Alternate Small-Business Grants That Are Available Today?
As you know there is no ongoing EIDL program available today as this program was unique to the pandemic. You can apply for many other small business grants to cover the expenses and launch your business off the ground.
A lot of government organizations and private agencies are providing small business grants today to help business owners get a financial boost to start or continue their business operations such as the following:
The Small Business Innovation Research Program And The Small Business Technology Transfer Program help businesses who have a formal collaboration partnership with any nonprofit research institution.
The program focuses on bridging the gap between basic science performance and subsequent commercialization of innovations in the private sector. To qualify for either program you need to show that your business has less than 500 employees and meet other criteria listed on the official website.
The United States Department of Agriculture administers the Rural Business Development Grant through which it offers funding opportunities for growing and strengthening small businesses that are operating in rural American communities.
Businesses must show they have less than 500 employees and the gross revenue of the startup companies is less than $1 million to qualify. The USDA grants are accepted once a year through the state or local office of USDA Rural Development.
Being a part of the US Department of Commerce the Minority Business Development Agency Centers run small business support centers that are similar to small business development centers.
Even though the agency does not provide grant funding or financial assistance to startup companies directly these centers can help them to get connected to relevant grant-giving organizations, help in the application procedure and secure different types of business financing.
Funded by the SBA, the State Trade Expansion Program assists small startup business owners in covering the cost of growing or expanding their company into international markets.
The funding amount and the eligibility criteria of the program may differ depending on your location however the program requires you to use the capital for participating in export trade shows, designing international marketing products and supporting website globalization.
The Tory Burch Foundation selects 50 women every year as the foundation enables them to take part in networking opportunities and professional development.
The foundation awards a grant of about $5000 that they can apply towards their business education. For-profit businesses generating revenue of less than $75,000 are eligible to receive these grants.
Woman’s Net, the Amber Grant Foundation provides unique opportunities for women entrepreneurs including minority women entrepreneurs with the monthly grant program.
Amber Grant includes monthly prizes for $10,000 with two additional $25,000 awarded at the end of the year to previous monthly winners. Applicants have to pay an application fee of $15 and complete an application outlining their goals and business information.
The Small Business Administration funds resource centers to provide education, business coaching, networking opportunities and technical support to new businesses or startup companies.
Small entrepreneurs are eligible to apply for tons of small business startup grants by contacting these resource centers, developing a robust business plan and significantly leveling their business in different ways.
Businesses owned by minority women can get funding worth $500 by applying for the Freed Fellowship Grant in addition to free mentorship and entrance to a $2500 end-of-year giveaway.
Both minority men and women are eligible to apply for this grant and complete the online application by filling in information about their businesses.
Startup business entrepreneurs can join the National Association for the Self-Employed to participate in growth grant funding opportunities.
These grants assist up to $4000 with no eligibility criteria. You just need to provide specific details about your business and how you are planning to use the grant to expand your business opportunities.
The Venmo Small Business Grant provides grant opportunities of $10,000 annually to eligible 20 business owners every year. This grant program also offers mentorship to startup companies from business leaders and you can also get featured on the company’s social media.
Businesses must have less than 10 employees and must have sold $500 of business products and services over the last month before applying for the grant. The annual sales of the company must be less than $50,000.
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SBA loan programs comprise different types of small business loans that you can apply including the following
SBA loans are available to small business owners with attractive terms including competitive repayment terms and interest rates. The loans can be used towards operating expenses, real estate, working capital and many more areas. Even though the application procedure can seem daunting, SBA lenders will help you to navigate the process.
SBA loan amounts can vary in the range between $50,000 for micro-loans to $5 million for other loans. Unlike EIDL you do not need to apply directly to SBA to be eligible for the loan funding instead you can apply with the participating SBA lenders.
This is not an exhaustive list as there are tons of more opportunities available for your small business in America. To read more about them read our next guide: Government Grants and Loans for Small business
Small businesses that belong to low-income communities and have seen a significant drop in revenue due to the COVID-19 pandemic were eligible to get assistance through the Targeted EIDL grant for the betterment of the business. The United States government is not funding COVID-related small business programs like PPP loans or EIDL loans however many types of small business loans are available for financially challenged small entrepreneurs. You can also apply for a non-COVID-19 relief loan from SBA that is not forgivable and limited to businesses located in disaster relief and have suffered damage due to a President declared disaster. There are various business grants funded by business organizations, the federal government, for-profit companies and local governments. Most of the time these grants are limited to certain demographics of business entrepreneurs such as veterans, minorities or women.
Learn more about How to Apply for Small Business Facebook Grants Program at the Get Government Grants’ section today. We will help you cover the resources that will help you to find the right type of support based on your needs and requirement
Frequently Asked Questions
What Was The Targeted EIDL Advance Grant?
The Targeted EIDL Advance Grant was offered to a few small businesses by SBA with a grant award of $10,000. Apart from that, businesses were also offered an additional Targeted EIDL Advance Grant of $5,000 to small businesses who faced losses during Covid 19.
Can I Apply For The $10,000 Targeted EIDL Advance Grant?
No, the $10,000 Target EIDL Advance Grant is not active now and it only assisted business during the Covid 19 situation. You can only apply for the non-COVID-19 relief loans from SBA.
Who could apply for the $5000 Supplemental Targeted EIDL Grant?
The businesses that were hit hard by Covid-19 could only apply for the $5,000 Additional Grant. The grant was only available to those businesses that employed not more than 10 employees and suffered an economic loss by 50%.
What are EIDL loans?
SBA Non-Covid EIDL loans are provided to small businesses, small agricultural cooperatives, and most private nonprofit organizations located in a declared disaster area and which have suffered substantial economic injury.