SBA says EIDL application will be available by January 17, 2021
Good news! The new federal recovery law includes more funding for Economic Injury Disaster Loan (EIDL) advance grants. SBA has indicated that the EIDL grant application will be available by January 17, 2021.
EIDL grants will be given to small businesses located in low-income communities,* who have experienced a 30% reduction in gross receipts during any 8-week period between March 2, 2020 and December 31, 2021 compared to a comparable 8-week period before March 2 or in 2019. Also, if you meet this description and previously received a EIDL grant that is less than $10,000 you can reapply to receive the difference (those reapplying for the full grant will receive approval priority over new applicants).
What: The EIDL grant is a form of small business relief providing $10,000 dollars in grants, i.e., completely free and non-repayable money, to select small businesses. The grant program was part of the initial CARES Act in 2020, but funds were exhausted within months. In December, Congress allocated additional funds for the program.
Who is Eligible:
- Business was in operation prior to January 31, 2020,
- Business has less than 300 employees,
- Business is located in a low-income community,* and
- Business suffered at least a 30% reduction in gross receipts during any 8-week period between March 2, 2020 – December 31, 2021 compared to a comparable 8-week period before March 2 or in 2019.
* What is a low-income community? This article explains how to determine if you live in a low-income community, and the federal government offers this map where you can type in your address for determination.
When to Apply: Authorized through December 31, 2021, but applications close when funds run out – so if eligible, apply fast. SBA hopes to be accepting applications on or around January 17, 2021.
How to Apply: We expect the SBA application portal to be ready by January 17, 2021. Small businesses should monitor the SBA website in the next week for more information.
- EIDL advance grants are not counted as gross income for tax purposes.
- Once you apply, the SBA is required to make a determination on application approval within 21 days.
- To keep up with the latest, check out NFIB’s coronavirus resources and join NFIB’s COVID-19 webinar series.
- The EID loan (EIDL) program (30-year term loan with a 3.75% interest rate, 2.75% for non-profits) was unchanged by the recent legislation and is still open through December 31, 2021. See this NFIB-created tip sheet for more information on the EIDL and apply via SBA here.
Updated January 9, 2021