2021 Targeted EIDL Advance Grant: How It Works & How To Qualify
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Expert Analyst & Reviewer
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US small businesses have been a major casualty of the COVID-19 crisis, but the CARES Act that passed in April 2020 brought struggling businesses at least some degree of relief. One of the small business funding programs funded under the CARES umbrella, Economic Injury Disaster Loans (EIDL), included a forgivable cash advance — essentially a grant — of up to $10,000 from the SBA. However, many businesses received far less than the full $10,000, as the money for this program was quickly depleted.
Businesses waited for the better part of a year for the EIDL program to be renewed. Finally, after many frustrating months, on December 27, 2020, the COVID-19 Targeted EIDL Advance was signed into law as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. However, the rules are a little different this time around. Read on to learn what the Targeted EIDL Advance/Grant is and if you’re qualified.
Table of Contents
What Is The Targeted EIDL Advance Grant Program?
SBA EIDL Advance Grants were renewed in the December 27, 2020, coronavirus stimulus package. There have been a few changes to how the 2021 EIDL Grants work that are intended to target businesses with the most need.
The new Targeted EIDL Grants for 2021 can still be as large as $10,000 and still do not need to be repaid. But this time, they are restricted to previous EIDL Grant applicants that received less than the full $10,000. As of this writing, you do not need to apply for this grant; the SBA will reach out to you if you are eligible. Previous EIDL applicants that received a partial EIDL Advance between $1,000 and $9,000 are eligible, as are those that previously applied for an EIDL Grant but didn’t receive one due to a lack of available funding.
Another change with the new program is that now you can deduct grant money spent on normally deductible expenses from your taxes. Additionally, the grant money you receive through EIDL no longer counts against the amount of money you can have forgiven from your PPP loan.
Also, the program is now restricted to businesses located within economically distressed areas, and you need to have suffered at least a 30% loss in income due to COVID during an eight-week period beginning on March 2, 2020, or later. Read more about those restrictions below.
How To Qualify For The Targeted EIDL Advance
You may qualify for the Targeted EIDL Advance in 2021 if:
- You previously applied for an EIDL Grant but didn’t receive the full $10,000. This includes businesses that applied but didn’t receive any EIDL Advance/Grant funds and businesses that only received a partial EIDL Advance/Grant between $1,000 and $9,000.
- Your business is located in a low-income community. Low income is defined as an area with a poverty rate in excess of 20% or an area where the median household income falls below 80% of your state’s median household income. Your community is the census tract you’re located in. If you’re located in a metropolitan area, you can also qualify if your area has a median income of less than 80% of your metro area in general. If you’re an independent contractor, or you don’t have a brick-and-mortar business location, you’ll use your home address to determine your business location.
- You can demonstrate a 30% loss of income due to the COVID pandemic. To qualify, you’ll compare any eight-week period in 2019 to the same eight-week period in 2020, starting March 2, 2020, or later. If you started your business in 2020, you can compare Q1 2020 income with Q2 or Q3 income, but you won’t be eligible if you weren’t in business as of January 31, 2020.
How To Apply For A Targeted EIDL Advance
You can’t currently apply — the SBA will contact you if you qualify.
The SBA will initially reach out to previous EIDL Grant applicants that only received a partial EIDL Advance (between $1,000-$9,000). Next, the SBA will reach out to those that applied for an EIDL Grant in 2020 but didn’t receive one due to a lack of program funding. Communications from the SBA will come from an official government email with an @sba.gov ending.
Even though you don’t have to apply, you will still be asked to submit documentation if the SBA reaches out to you. The SBA email will include instructions to determine your eligibility (including low-income location and reduction in revenue requirements) and information about the documentation you need to submit.
EIDL Advance FAQs
More Funding Resources For COVID Relief
The new EIDL Grant for 2021 is a lot more restrictive in what types of businesses will be accepted. This time around, you will have to prove your business suffered a loss, and you’ll only qualify if your business is in a low-income area. The program is also closed to first-time applicants. However, even if you don’t qualify for the 2021 EIDL Grant, that doesn’t mean you aren’t eligible for any other government-funded small business COVID relief — such as the PPP program, which has also been renewed in 2021. Check out these additional funding resources for small business coronavirus relief options:
- PPP Round 2: Main Differences Between The First & Second Round Of PPP Funding
- 7 Lenders That Are Offering Second Round PPP Loans Online
- 5 Banks That Are Currently Accepting Round 2 PPP Loan Applications
- Don’t Want (Or Were Denied) An EIDL Or PPP Loan? Here Are Your Best Small Business Loan Alternatives
Shannon Vissers
Expert Analyst & Reviewer at Merchant Maverick
The former editor-in-chief of SteelOrbis, Shannon has been researching and writing about small business software and financing since 2015. Her shopping and retail expertise has been cited in numerous publications, including Reader's Digest, MSN, Yahoo Finance, and GOBankingRates . She has also published articles for LIVESTRONG.COM, eHow, Life'd, and other websites. Shannon attended San Diego State University, graduating in 2005 with a BA in English.
View Shannon Vissers's professional experience on LinkedIn.
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What happens is I filed my business under my name in 2019 and then got business LLC and filed under that name on 2020 taxes. Will I get denied for Targeted advance? Also do they count regular unemployment from my job as part of my business income?
Hi Shawnte,
We weren’t able to find any guidance from the SBA for your situation. Our advice would be to contact the SBA at 1-800-659-2955 to inquire since this situation isn’t addressed in any of the Targeted Advance documentation we’ve reviewed. Unemployment benefits are not calculated as part of gross receipts to determine if a person is eligible for EIDL or the Advances. However, there is one important thing to note. If you receive a loan or advance and use these funds to pay yourself, this MUST be reported to the employment office if you are still drawing benefits. Getting unemployment benefits and using EIDL funds for owner’s compensation is considered “double-dipping” and could spell big trouble. If you’re still receiving unemployment benefits, you can continue to do so while receiving an EIDL loan or grant assuming that the EIDL funds are used for other purposes, such as purchasing supplies or inventory. Best of luck!
my targeted eidl advance was sent to an account that does not accept SBA loans grants or anything else it was returned to the SBA that a month and a half two months ago i have continuously sent voided checks my ID my tax forms my 4506 T form everything necessary to every email the SBA and they still havent sent my grant money to the update bank. my bank account so overdrawn its gona start hurting my credit and will most likely the bank will close my account soon ive lost everything trying to stay above water waiting on this so called gov. help i have nothing coming in do to lack of work b/c of covid everthing is
late. No help anytime soon losing everything outa money and the sba is just dragging their feet
Hi T,
We are so sorry to hear this. You’ll want to contact the SBA’s Disaster Assistance Processing and Disbursement Center. Explain your situation to them by phone or email.
Bear in mind that you may have to be persistent and patient given the volumes of applicants the SBA is dealing with. Best of luck! And please let us know if this helps!
I’m in the exact same spot!!! I have almost given completely up!!!! I don’t believe SBA even cares! They used to seem a little caring the first 4 Months. When I’d call. And now are just rude! Or I’m transferred and then hung up on!!! It’s fixing to be 6 months now that my f*****g bank returned the money! And since I got them all the new info to resend! My business is about to be dead !!!if they ever do send the money I may not even have the account still open to recieve it!! So tired of yelling , then crying!
I was contacted by the sba for the targetted advance. turned in all requested paperwork and recieved an email to resubmit my id within 48 hrs. I did then recieved an email that stated denied due to not in a low income community. I am operating in Annada, MO which fits the criteria set by the sba for low income. I emailed them and was directed to a re- evaluation email. I sent what they said and havenot heard anything since late april. My understanding is that this was a grant to go against the 10,000 that i recieved as an eidl in 2020. can i check the status. This is crucial that i recieve that grant. thanks any info will help
Hi Joshua,
If you received an invitation from the SBA and subsequently applied, you can check the status of your Targeted EIDL Advance through the SBA’s Economic Injury Disaster Portal. Best wishes to you!
I apply for targeted Advance in feb, Its been saying , (submit for two months) no email at all
Hi Nancy,
If you received an invitation from the SBA and subsequently applied, you can check the status of your Targeted EIDL Advance through the SBA’s Economic Injury Disaster Portal.
Hi there, I was recently approved and have received the funds for my EIDL loan, I am a contractor. I want to know if it is possible to receive the funds in cash manner to pay for certain payments and operating costs?
Thank you!
Hi Wyatt!
You can absolutely withdraw funds from your checking account to make payments with cash. My advice would be to always make sure you have documentation backing up any purchases (whether paid by cash, check, credit card, or another method). This could be in the form of receipts, invoices, or another form of documentation. Good luck!
I have submitted my application. How long before it will be finished processing?
Hi Ronni,
This is what the SBA says:
“Once the SBA has received all requested documentation, we will process the information and issue any additional funds as quickly as possible. The SBA’s goal is to process all requests within 21-days of receiving a completed application. All application decisions will be communicated via email.
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 applyed for a edil loan in July of 2020 and approved in July signed my papers and still have not received my loan. Now their was fraud thought to have been and my bank sent the money back. “Understandable “. I submitted all the paper documents requested by October everything was finalized in November and submitted and ok. Their has been more action required from me. It is now may 2021 and I have still yet to receive my loan this has been a experience and very frustrating ive almost lost everything my business is on its last leg. Every time I call the sba its a new excuse to why it is taking so long. I wish I had a better review but its far from a good experience
Hello i’ve been told that Daca business owners are receiving the targeted EIDL advance but me been one of them was declined by the sba, does anyone have any info on this matter>?
Hi doomedlove!
According to the SBA, the following applies to non-US citizens when applying for the EIDL: “A non-US citizen who owns 20% or more of the business is eligible if they are classified as a ‘noncitizen national’ or ‘qualified alien.’ Qualified aliens include permanent residents with a current green card.” If this requirement is not met, the application will be rejected. You can check out the SBA’s FAQs on EIDLs for more information on qualifying for a loan. Good luck!