What is an EIDL Grant and How to Get It

Economic Injury Disaster Loan (EIDL) Grant – Overview

Small businesses can apply for an EIDL grant of up to $10,000 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 no longer available. 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 ‘Targeted EIDL Advance’ grant is offered to small businesses in low-income communities.

The Targeted EIDL Advance provided up to $10,000 to applicants in low-income communities who previously received an EIDL Advance of less than $10,000 or those who applied but received no funds due to a lack of program funding.

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 designation of low-income communities for the Targeted EIDL Advance is determined by the SBA, based on criteria similar to those used for the New Markets Tax Credit by the CDFI Fund, not directly by the IRS:

  • 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, 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 have either received no or partial grant funds.
  • According to the SBA, your business is situated in a designated low-income community.
  • You can show more than a 30% reduction in income during 8 weeks, beginning from 2nd March 2020 or later.
  • Eligibility for the Targeted EIDL Advance required a business to have 300 or fewer employees.

If you fulfill the above criteria, remember 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 previously received the program’s funds. In 2020, the EIDL grant was restricted to $1,000 per employee, up to a maximum of $10,000 per business.

Businesses eligible for the Targeted EIDL Advance or Supplemental Targeted Advance that received less than the maximum available under the initial EIDL Advance could be invited to apply for the difference, up to the maximum, depending on the specific program guidelines and availability of funds.

Eligible businesses for the Targeted EIDL Advance that received a partial EIDL Advance could be invited to apply for an additional amount under the Targeted or Supplemental Targeted Advance, subject to SBA’s criteria and fund availability.

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

How to Apply for an EIDL Grant?

Earlier, you could 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 contacted 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 the administration makes will be communicated directly to you through email.

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


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 $10,000.

This is a genuine financial assistance program; 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 were able to apply for an EIDL through the SBA's website when the program was open; receiving a direct email invitation from the SBA was not a prerequisite for application. To be eligible for an EIDL, your business must be physically located in the United States or its territories and meet the SBA's size standards. There are several other requirements to become eligible for this program.

What can be done with the money from EIDL?

EIDL funds can be used for working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments.

How can I find out where my loan application stands?

Applicants could check their EIDL application status through the SBA's portal using their application number and email address, without needing a specific invitation. Applicants were given the opportunity to review and select loan amounts based on eligible calculations determined by the SBA, prior to final submission for processing.

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

If an EIDL application is declined, the SBA sends a decline letter via email or postal mail, detailing the reason(s) for the decision and the applicant's rights to request reconsideration or appeal. 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

Current Version
September 13, 2023
Updated By
Andrea Morales G.
March 21, 2024
Updated By
Andrea Morales G.

Follow us