Do I need to return the grant if I don’t get the EIDL? There will be no interest charged on this amount. This means that the amount you are given through this program does not need to be repaid, even if your application is ultimately rejected. While the SBA refers to this program as an advance, it was written into law as a grant. Do I have to pay the targeted EIDL advance grant back? We simply don’t know how long it will take the SBA to actually process these requests and deposit the funds. This, unfortunately, brings us right back to the unpredictability of the SBA’s processing times. Any application decisions will be communicated via email. When will I get the EIDL grant?Īccording to the SBA, once you’ve submitted the required documentation, they will aim to process your request within 21 days of receiving your application. In 2021, if you are eligible for the targeted EIDL advance, the SBA will be reaching out to you directly via email.įurther reading: How to Fill out Your SBA EIDL Loan Application. The EIDL grant was not included by default, and had to be officially requested. In 2020, it was as simple as ticking a box in your SBA EIDL loan application. So if a business received a $2,000 grant with their EIDL but were eligible for the full $10,000, they can now apply for the remaining $8,000.įor businesses that did not receive a grant due to a lack of EIDL funding, they can now apply for the full $10,000. In 2021, eligible businesses that received a partial grant for less than $10,000 can apply for the difference. In 2020, the EIDL grant was limited at $1,000 per employee up to a maximum of $10,000 per business. The SBA is offering businesses the opportunity to receive the grant even if they already received a grant before. We also cover the conditions of the EIDL, including what you can and cannot spend the funds on. In our EIDL Loan Handbook for Small Businesses, Bench’s expert bookkeepers outline the bookkeeping and recordkeeping requirements to remain compliant with the SBA’s loan terms. Getting approved for an EIDL loan is a great first step in successfully navigating COVID-19 as a business.īut once you receive the loan, you’ll need to spend the funds in the right way, and keep a number of records to comply with the SBA agreement you signed. The SBA will then use this information to determine if your business experienced a 30% or greater reduction in revenue. For example, if you’re applying in February 2021, you would use January 2021. How can I demonstrate a 30% reduction in revenue?Īccording to the SBA, you will be required to provide gross monthly receipts starting from January 2019 through the most recently completed month. For communities located in metropolitan areas- Median family income in your community does not exceed 80% of the metropolitan median family income.For communities not located in metropolitan areas - Median family income in your community does not exceed 80% of the statewide median family income.The IRS defines low-income as any of the following: The SBA has not provided guidance on how they will define a low-income community. Applicants will receive an email invite from the SBA.įurther Reading: FAQ Regarding Targeted and Supplemental EIDL Advance What is a low-income community? If the above criteria applies to you, remember, you don’t need to apply: the SBA will contact eligible recipients directly. You have 300 employees or fewer employees.You can demonstrate more than 30% reduction in revenue during an 8-week period beginning March 2nd, 2020 or later.You are located in a federally designated low-income community.You applied for EIDL assistance on or before December 27th, 2020 and either received partial grant funds or no grant funds at all.If the following statements apply to you, then you may be eligible for the targeted EIDL advance grant. Who will be eligible for the targeted EIDL advance?
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