What is an EIDL Grant and How to Get It?

EIDL Grant EIDL Grant

Economic Injury Disaster Loan (EIDL) Grant – Overview

Small businesses can apply for an EIDL grant of up to US$ 15,000 as an advance on their original EIDL loan.

This was part of the Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) program. The advance amounts were considered tax-free grants and did not need to be paid back.

As of January 1, 2022, the EIDL advance program funds have been exhausted and are not available anymore. However, the SBA continues to provide alternate funding options for small businesses, including traditional SBA loans.

The grant was refunded during the second round of stimulus announcements. However, the new grant funds are directed toward low-income communities and come with stricter eligibility criteria.

Eligible recipients for the targeted EIDL advance can expect to be contacted by the SBA and the applicants themselves need not take any action.

What is Targeted EIDL Advance?

The new grant, called the ‘Targeted EIDL Advance,’ is offered to small businesses operating in low-income communities.

If you are eligible for this advance grant program, you can receive up to US$ 10,000 in advance funds if your business is located in under-served communities.

You can even receive this advanced EIDL fund if you have applied for an EIDL Advance grant earlier but were unsuccessful in securing grants due to a lack of program funding.

This also applies if you have previously received only partial funding under the EIDL funding program.

The IRS defines a low-income community as having the following aspects:

  • The poverty rate is more than 20% in the area.
  • Median family income in non-metropolitan areas does not exceed 80% of the statewide median family income range.
  • The median family income in metropolitan areas is less than 80% of the median metropolitan family income.

According to the SBA, you should be able to provide gross monthly receipts dating from January 2019 to the most recently completed month. For instance, if you are applying in August 2022, you will use the receipt from July 2022.

The SBA uses this detail to decide if your business experienced a 30% or more decrease in revenue during the period in question.

To check if your business is located in a designated low-income community, you can visit the official SBA policy map at this link https://sbaeidl.policymap.com/newmaps#/.

Who is Eligible for the Targeted EIDL Advance Grant?

You may be eligible to receive the Targeted EIDL Advance grant if you fulfill the following criteria:

EIDL Grant

EIDL Grant – Who is Eligible?

    • You applied for EIDL assistance on or before 27th December 2020 and either you have received no grant funds or partial grant funds.
    • Your business is situated in a designated low-income community, according to the SBA.
    • You can show more than a 30% reduction in income during an 8-week period, beginning from 2nd March 2020, or later.
    • Your business has at least 300 employees or more.

If you fulfill the above criteria, remember that you don’t have to apply. The SBA will contact all eligible applicants directly. You can expect to receive an email from the SBA in this regard.

How Much Funding Will You Get Under EIDL Grants?

The SBA offers businesses the chance to receive this grant even if they are previous recipients of the program’s funds. In 2020, the EIDL grant was restricted to US$ 1,000 per employee, up to a maximum of US$ 10,000 per business.

In 2021, the eligible businesses that received partial funds amounting to less than US$ 10,000 can apply to receive the remaining amount.

So, if your business received US$ 2,000 under EIDL when you were eligible to receive the full US$ 10,000 amount, you can now apply for the remaining US$ 8,000.

For businesses that did not receive any amount due to a lack of EIDL funding, you can apply to receive the full US$ 10,000 grant amount.

How to Apply for an EIDL Grant?

Earlier, you could simply tick a box in the SBA EIDL loan application as the EIDL grant was not included by default. Hence, you had to request it officially.

However, things changed for the targeted EIDL advance grant as the SBA started to reach out to applicants directly through email.

When Will You Receive EIDL Grant Funds?

According to the SBA, once you have successfully submitted the required documents, it takes around 21 days for the application to be processed completely. Any decision made by the administration will be communicated directly to you through email.

However, the SBA does not guarantee that your application will be processed in the 21-day period, so you should expect some delay in receiving a response for your application.


The SBA EIDL grant is available to businesses that operate in low-income communities and have applied for this financial assistance on or before 27th December 2020 but have not received the complete amount of US$ 10,000.

This is a genuine financial assistance program, and the grant is not considered a loan. Hence, you must not worry about repaying the EIDL grant money later.


Can a company make an EIDL loan application?

Businesses can apply for an EIDL if they receive a direct email invitation from the SBA. Your company must be located in the US and meet the SBA's definition of a small business. There are several other requirements to become eligible for this program.

What can be done with the money from EIDL?

The revenues from the EIDL can be used to pay for various working capital requirements and typical operational costs, including the maintenance of health insurance coverage, utilities, rent, and fixed debt payments.

How can I find out where my loan application stands?

You will receive an invitation to log in to their customer portal. You may check the application status there. You can also choose a loan amount and submit it for last-minute review through their customer portal.

How do I find out if my loan application has been rejected?

If your loan application is denied, you will get an email message from SBA explaining the reason for the rejection. The email contains information on how to appeal the decision, and if you require any assistance, you can always contact their customer service team.

See Also

DHHS Grants

IDA Grant Program

Grants for Medications

What Countries Have Free Healthcare?

First Responder Grants

Small Business Grants in Louisiana

I am a dedicated healthcare researcher and an enthusiast specializing in medical grants, medical education and research. Through my articles, I aim to empower healthcare professionals and researchers with valuable insights and resources to navigate these critical aspects effectively.

Having sharpened her skills as a validation manager in the fast-paced world of Cybersecurity over a decade, Andrea now applies her expertise to raise the standards of the fact-checking space. As a meticulous fact-checker, she diligently validates the claims presented in our articles, leaving no room for misinformation or ambiguity.

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