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FAQs About SBA EIDL Loans & Targeted Advances For COVID Relief

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Erica Seppala

Erica Seppala

Erica is a writer based in Greenville, South Carolina. She is a graduate of Limestone College. Initially determined to be an accountant, she put away the calculator and picked up a laptop to pursue her dream of being a writer. Erica has spent the past 10 years writing blogs and articles for hundreds of private clients, and she loves sharing her love of research and the written word with everyone around her.

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11 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Lynn Stephens

    I received the invitation to apply for the targeted EIDL advance (the remainder of my $9000 since I already received $1000); however, they are stating your business must be located in a low-income community. I am not. I am, however, low-income. Myself and my business make less than $25,000 per year. I also had a greater than 30% reduction in income during the first 4 months of last year due to COVID. Does the mere fact that my home happens to be located in an area that is not low income completely disqualify me for the advance even though I meet all the other criteria (including being considered low-income regardless of where my home happens to sit)?

      Jessica Dinsmore

      Hi Lynn,

      Have you verified that your business address is not in a low-income community? If not, you can do that here. If you’ve already ruled that out, I’m afraid I don’t have any information indicating that a low income, in general, would suffice. However, the SBA has provided this information for anyone with additional questions:

      Who should business owners contact with additional questions about these Targeted
      Advances?

      Business owners can contact SBA’s Customer Service Center at 1-800-659-2955 or by email at
      TargetedAdvance@sba.gov if they have questions about the Targeted EIDL Advance program.

      I’d suggest reaching out to them and posing your question, and maybe they can at least point you to a program that you do qualify for. I wish you all the best.

        Christopher Richter

        I ran into the same issue. Did you ever get a resolution to your situation? Thanks!!

          Ali Salimi

          I’ve received an invite email from SBA (Sunday, Apr 4th), and I received $1,000 on the previous round, unfortunately, my business is not in low-income comm. So that means I am not eligible for the 2nd round, right? Is any news/update about all other businesses like my business that are not located in low-income comm. ? Thanks!

            Jessica Dinsmore

            Hi Ali,

            If you go here and scroll down, a popup window will appear with instructions on how to get information on some other SBA programs that aren’t getting the same level of attention as the PPP/EIDL programs. In order to qualify for the Targeted EIDL grant, your business does need to be in a low-income community, and so far I haven’t seen any way around that, I’m sorry to say. However, if you received the invitation, go ahead and apply– maybe the SBA will make a different determination! Best of luck to you!

              Karl Hooper

              I applied for an EIDL loan in 2020. There was no EIDL grant money left but i did get an EIDL loan. I’ve recently been contacted by SBA to apply for the EIDL grant. Since I already received the EIDL loan will I still get the grant (possibly) and if so will they subtract it from my loan since I have already received a loan?
              So what I’m asking is shouldn’t I get the grant subtracted from my loan out of fairness?

                Jessica Dinsmore

                Hi Karl,
                As far as we can tell, the Targeted EIDL Advance is available to anyone who didn’t receive all or a portion of the original grant; therefore, you should still be able to receive it even if you received the EIDL. We haven’t seen anything suggesting that the advance would be subtracted from the loans. Of course, if spent on eligible expenses, the grant can be completely forgiven, so it won’t add any additional payments to your existing EIDL. As usual, it’s always a good idea to discuss the specific details with your lender.

                  Lobo

                  I received a email from SBA to apply for the targeted advance, about two weeks ago. They sent me a link to apply. I filled it out in hast because I was afraid that I would miss this opportunity like I did the first time.

                  I did receive a small loan but, no advance. I was just thinking that I may have made a mistake on my application.

                  My question is, will they contact me to correct my mistake or will they just move on to another applicant?

                  Do you know how long it will take to find out the status of my application?

                  Thank you.

                  I really enjoy your blog.

                    Jessica Dinsmore

                    Hi Lobo,
                    Actually, with the small amount of money and quick turnaround, it sounds more like the advance. Your loan application may still be processing if that’s the case. The best course of action would be to talk directly with your lender to find out for sure. Thanks so much and best of luck to you!

                      Jacqueline Anderson

                      Question, I applied for the EIDL (denied) but was approved for the grant. However, the next day (literally) they ran out of funds. Will I recieve the grant? Do I have to re-apply?

                        Jessica Dinsmore

                        Hi Jaqueline,

                        The SBA states:

                        SBA will first reach out to EIDL applications that already received a partial EIDL Advance (between $1,000 – $9,000). Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation.

                        Next, SBA will reach out to those who applied for EIDL assistance on or before December 27, 2020, but did not receive an EIDL Advance due to lack of program funding. These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted EIDL Advance if they meet the above criteria (low-income location and reduction in revenue) AND:

                        Have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
                        All applicants may be asked to provide an IRS Form 4506-T to allow SBA to request tax return information on the applicant’s behalf.

                        Please do not submit duplicate COVID-19 EIDL applications. Only prior applicants will be considered for the Targeted EIDL Advance.

                        SBA will reach out to you if you qualify!

                        All communications from SBA will be sent from an official government email with an @sba.gov ending. Please do not send sensitive information via email to any address that does not end in @sba.gov.

                        So it’s not for sure, but if you meet the criteria for the Targeted Advance, you should watch for an email from the SBA. Good luck!

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