2021 Targeted EIDL Advance Grant: How It Works & How To Qualify
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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
Shannon is a writer and editor based in San Diego, CA. Shannon attended San Diego State University, graduating in 2005 with a BA in English. She is the former editor-in-chief of SteelOrbis, an online trade publication. Shannon has also published articles for LIVESTRONG.COM, eHow, Life'd, and other websites. She has been with Merchant Maverick since 2015, writing about POS software, small business loans, and financing for women entrepreneurs.
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i got my emil 2 month ago idid my appilcation an i stil have not hear anything on my appilcation
Hi Richard,
This is what the SBA says:
However, I’ve been hearing good news from merchants who have finally been funded, far beyond the 21 days. So if you haven’t been funded yet, keep checking, and don’t lose hope!
Hi, I received an invitation for the EIDL grant 1 week ago. I haven’t received anything else from the SBA regarding this. They didn’t ask me to submit the form for them to view my taxes either. I do meet all of their requirements but I’m just worried that I wasn’t approved. Does it take this long to go to next step?
Hi Krystal,
I can definitely understand your concern! I’d recommend getting in touch with the SBA to follow up:
Hello , my business had to close and I received unemployment. Will I still be considered for the targeted edil if I received unemployment?
Hi Nicole,
Yes, you can receive EIDL and unemployment at the same time. This includes regular state unemployment and PUA unemployment. However, when it comes to spending the EIDL, you may not be able to use it to pay yourself if you are also receiving PUA, because that could be considered double-dipping. So if that’s the case you would have to use the EIDL for other business expenses. I hope that helps!
Received invitation to apply for Targeted EIDL advance 2/14/21. I followed all of the required steps.
I have heard nothing. My application number isn’t even showing up on the SBA check status portal.
Is there any chance they will eliminate to low income area requirement? My Non profit organization was devastated by the pandemic. Our revenue for the past year was 0.00 and we may have to close for ever. The low income requirement is seems unfair.
Hi Michael,
I’m so sorry.
I wish I had an answer for you, but we just don’t know what criteria changes the SBA may have up their sleeves. If you haven’t already please take a look at our COVID resource hub. You may find that another program might work for you. Best wishes to you!
Hello… I was wondering if someone knows the answer to this. You cannot get anyone on the phone at the SBA to talk to you about it… they tell you to email. Then when you email, you get a form letter back saying to call.. round and round.. If I asked for a reconsideration of the loan part of EIDL, will that hold up my targeted advance app? I was invited to apply for targeted and did so.. but then I asked for a reconsideration of the loan portion after reading some info. Is that holding up my targeted advance now…or is the advance still processing? They seem to have these separate. Thanks…
Hi Casey,
Unfortunately, we haven’t come across this situation before and we weren’t able to find the answer to your specific question. If you haven’t been able to get through on the phone, you could try reaching out via email as well. Or contact your local SBA office.
I HAVE READ ALL THE QUESTIONS AND ANSWERS FOR THE SECOND ROUND OF EIDL, BY CHANCE DO YOU KNOW WHEN THE EIDL SECOND WILL BE ROLLING OUT! I DID QUALIFY FOR ST ROUND ! 53 YR OLD FEMALE OWNER OF ABSTRACTING CO. MY BUSINESS WAS DEVASTATED DUE TO THE VIRUS AND ALL THE COURT HOUSE SHUT DOWNS AND EVEN WITH THE PPP LOANS AND EIDL ITS A REAL STRUGGLE TO GET CAUGHT UP IN THIS INDUSTRY. I HAVE APPLIED FOR SEVERAL SMALL BUSINEES LOANS AND TO NO AVAIL WAS SHOT DOWN QUICKLY….
Hi Mary,
If you received an EIDL and need additional funding, you may be eligible to modify your loan and receive an increased amount. Our post “FAQs About SBA EIDL Loans & Targeted Advances For COVID Relief” should be helpful to you.
Hi,
thank you the detailed info.
I have an issue and need any help you can give.
I applied for Eidl loan and advance grant on July 2020. when submitting the application I forgot to opt in for the advance grant. hence I did not receive any advance till now.
However, with this new targeted advance , do you think I should reach out to them or is it wise for me to patiently wait. ?
Hi Peldy,
You’ll have to patiently wait, as you can’t currently apply. The SBA will contact you if you qualify. We cover this in more detail in the How To Apply section of this post. Best wishes!
Meet all the criteria for the targeted EIDL grant but the application ask for all income for 2019 , 2020, January and February of 2021 on the application. I did suffer a 30% loss of income for 8 week period in 2020 compared to same time period in 2019 but there are other months that I made more after the pandemic compared to before the pandemic. Will I still be eligible for the grant since I did suffer the 30% loss of income during an eight week period ?
Hi Tina,
As we understand it, as long as you had a 30% loss of income in those 8 weeks (year over year), you should still be eligible.