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EIDL Advance is back!

In the last couple of weeks clients have been receiving email notifications from the SBA that they may be eligible for the Targeted EIDL Advance. What is the Targeted EIDL Advance you might ask? Well let's start with an explanation of the original EIDL Advance.

Under the CARES Act passed in March 2020, the EIDL Advance was created. These grants provided an emergency advance of up to $10,000 to small businesses and private non-profits negatively impacted by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first had to apply for an EIDL and then request the advance. The could be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.

  • EIDL Advance did not have to be repaid under any circumstances.

  • Recipients did not have to be approved for an EIDL loan to receive the EIDL Advance.

  • The amount of the loan Advance was deducted from total loan eligibility.

  • Businesses who received an EIDL Advance in addition to the Paycheck Protection Program (PPP) loan will not have the amount of the EIDL Advance subtracted from the forgiveness amount of their PPP loan.

EIDL Advance funds were originally calculated based on the number of employees indicated on an applicant's COVID-19 EIDL application: $1,000/employee, up to a maximum of $10,000. As a result many businesses received less than $10,000, even though the CARES Act specifically provided for a $10,000 grant.

To help close this unintended gap, the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act passed on December 27, 2020, created the Targeted EIDL Advance. Its intention is to provide businesses located in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency.

Advance funds of up to $10,000 will be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding.

The SBA says that applicants do not need to take any action at this time. Only prior applicants will be considered for the Targeted EIDL Advance and submitting a duplicate EIDL application will not help speed this process up. SBA will reach out to those who qualify.

SBA will first reach out to EIDL applications that already received a partial EIDL Advance (between $1,000 - $9,000). Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation.

Applicants may qualify if they:

  • Are located in a low-income community. The definition of a “low-income community” is defined in section 45D(e) of the Internal Revenue Code. Note that the applicant must be located in a low-income community in order to qualify. Additional details on how SBA will identify low-income communities will be available soon on their Coronavirus Relief Options page; AND

  • Can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries do not include PPP funds or unemployment funds) to confirm the 30% reduction.

Next, SBA will reach out to those who applied for EIDL assistance on or before December 27, 2020, but did not receive an EIDL Advance due to lack of program funding. These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted EIDL Advance if they meet the above criteria (low-income location and reduction in revenue) AND:

  • Have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.

All applicants may be asked to provide an IRS Form 4506-T to allow SBA to request tax return information on the applicant's behalf. You also must certify that the monthly revenue totals provided are true and correct.

All communications from SBA will be sent from an official government email with an ending. Please do not send sensitive information via email to any address that does not end in

If you received the email from SBA, it is important that you respond ASAP. You will get an opportunity to update your banking information within the portal for those that have possibly closed their bank account since they received the grant. The SBA has stated you will get your remaining amount within 21 days of submission.

For a list of frequently asked questions about the Targeted EIDL Advance click here. If you still have questions about the Targeted EIDL Advance reach out to us at


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