EIDL Grant: Best Guide to Apply and All You Need


To stave off the economic devastation caused by the COVID-19 pandemic, billions of Grant called EIDL are provided to individuals and businesses by the federal, state, and local governments.

As a small business owner, you have likely been affected by the COVID-19 pandemic. Whether that meant temporarily closing your doors, reducing your client base, or working remotely, 2020 was undoubtedly a challenge. If you’ve been like millions of other small business owners, you’ve got at least some financial help through the U.S. government’s Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan (EIDL).

Have you received your EIDL Grant yet? Do you know how to apply for the grant? This guide will provide you with all the details you need.

About the EIDL grant

The Economic Injury Disaster Loan or COVID-19 EIDLs are set up to provide economic relief to individuals and businesses currently suffering from revenue losses due to the pandemic.

The grant, now known as the “EIDL Targeted Advance”, is only available to small businesses in low-income communities.

Eligible recipients can receive advances of up to $10,000 if they are a small business in a low-income community that previously applied for the EIDL Advance scholarship but did not receive it due to lack of program funding or prior partial funding, you can use the SBA policy chart to determine if you live in a low-income community.

Starting April 6, 2021, you can apply for an EIDL of up to $500,000 for 24 months of economic damage to pay for expenses such as fixed debt and payroll. Some loans processed prior to this date may qualify for an increase and the SBA will notify these borrowers.

The interest rate on EIDL loans is 3.75% (2.75% for non-profit organizations) and the repayment term can be up to 30 years. The COVID-19-EIDL includes an automatic one-year deferred repayment, whereby the interest begins to run with the disbursement of the loan.

If you qualify and receive a targeted EIDL advance, the funds received will be waived in full. The amount you will receive is up to $10,000 depending on the amount you received from the original EIDL Advance program.

Is the EIDL grant still available?

EIDL Advance Funds were originally calculated based on the number of employees in an applicant’s COVID-19 EIDL filing: $1,000 per employee, up to a maximum of $ 10,000.

  • EIDL Advance does not have to be repaid.
  • You don’t need approval for an EIDL in order to receive the EIDL advance payment.
  • The amount of the loan advance was deducted from the total creditworthiness.
  • For companies that have received an EIDL advance in addition to the Paycheck Protection Program (PPP) loan, the amount of the EIDL advance will no longer be deducted from the waiver amount of their PPP loan.

If you have already applied for a PPP loan waiver and the amount of your EIDL advance has been deducted from the waiver amount, guidelines have been published.

EIDL applications are still pending, although there are no further applications for the advance payment.

Please do not submit any additional applications via the COVID-19 EIDL portal.

EIDL Grant advance 2021

EIDL Advance provides additional details on the new Advanced program, including the eligibility requirements.

Optimized application

EIDLs are funded by the SBA, so submit your application to the SBA. The application process for the COVID-19 version of the EIDL has been streamlined; According to the SBA, filling out the application should take two hours and 10 minutes or less.


The application begins with a disclosure section that describes the loan and states that the information collected will determine your eligibility. It includes a warning that if you do not provide all of the information required, your loan will not be processed, as well as a reminder that the SBA is relying on your self-certification that you are entitled to the advance payment (in case you apply) that its punishment is perjury if you are not honest.

After you have verified your eligibility on the disclosure page, proceed to the Company Information section.

Company information

This section is the longest and requires your P&L as of January 31, 2020. Note: Not all answers are required. Sections marked with a red star must be completed. If not marked as such, only enter these if they apply to your company

Information for entrepreneurs

This is where you need to indicate whether your company is 100% owned by another company. If it is owned by individuals, you must provide information about each owner who has a 20% or more interest in the company. The information requested includes:

  • Home address
  • Phone number
  • Citizen Service Number
  • date and place of birth
  • citizenship

Additional information

This section contains questions about prosecuting property owners and then moves on to filing the application. Also, check your bank details to ensure a smooth process when depositing your money directly The SBA has extended the application deadline to December 31, 2021. You will see how to apply in the later section of this article.

Is EIDL Grant Taxable?

Originally, funds from EIDL advances were shown as taxable income. However, this decision was reversed under the Consolidated Loans Act. Now funds from an EIDL advance are no longer taxable business income. Additionally, qualifying expenses can be written off to reduce your tax liability.

If you received the EIDL loan, the taxes on these funds work like any other commercial credit tax. You can also reduce your tax liability by deducting the expenses covered by using these funds.

EIDL grant SBA

SBA can allocate up to $2 million to meet financial obligations and operating expenses that could have been met without the disaster.

The loan amount is based on your actual economic loss and the financial needs of your company, regardless of whether the company has suffered material damage. A company can qualify for both an EIDL and a physical disaster loan.

The maximum combined loan amount is $2 million. A separate SBA disaster relief program known as Business Physical Disaster Loans covers property damage.

SBA EIDL Grant Application


To qualify for an EIDL, your company must meet the SBA definition and small business size standards, be based in the United States or a U.S. territory and have suffered working capital losses as a result of the coronavirus pandemic.

Definition standards: According to the SBA, a small business:

  • Is organized for profit
  • Operates primarily in the United States or makes a significant contribution to the US economy by paying taxes or using US products, materials, or labor
  • Is independently owned and operated
  • Is not dominant in his area at the national level

Business Size: You are eligible for this program if your company has 500 or fewer employees. However, the number of employees is higher for companies in some sectors. The SBA Small Business Standards table shows whether your industry allows more employees. Notes on an alternative use of receipts (income) instead of the number of employees do not apply to the COVID-19 EIDL.

Location and business type standard: As the coronavirus pandemic (COVID-19) affects all 50 US states; Washington D.C, and US Territories, virtually every small business in the United States and its territories based on location is eligible.

How to apply

  • You can apply for an EIDL online from the SBA.
  • You can visit an SBA resource partner who can assist you with the loan application process. Find your nearest Small Business Development Center (SBDC) or Women’s Business Center here.

Is EIDL Still Available From SBA?

The Small Business Administration is no longer accepting new applications for COVID-19 EIDL loans or advances as of January 1, 2022. Beginning on May 6, 2022, the SBA will no longer review requests for an increase in a COVID-19 EIDL loan or requests for reconsideration of loan applications that had previously been denied.

What is EIDL Funding?

This federal lending program for small enterprises assists in the recovery of small businesses from the economic effects of the COVID-19 tragedy by making funds available in a user-friendly format and making borrowing easier.

Is SBA Providing Free Funding?

The Small Business Administration does not offer any grants to help individuals start or grow their businesses. Grants are awarded by the Small Business Administration (SBA) to nonprofit organizations, Resource Partners, and educational institutions that promote entrepreneurship by offering counseling and training programs.


Small businesses, small agricultural cooperatives, and most private nonprofits based in a declared disaster area that have suffered significant economic damage can qualify for an SBA Disaster Economic Damage Loan (EIDL).

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