EIDL Grant Provides Assistance to Those in Need
EIDL Grant or The Economic Injury Disaster Loans Grant is an assistance program of the federal government under the Coronavirus Aid, Relief, and Economic Security Act. The said program is supervised by the U.S Small Business Administration (
SBA) and serves as an extension of the Economic Injury Disaster Loans.
The program was created to give additional support to small business owners, entrepreneurs, enterprises, and non-profit groups/organizations that are greatly affected by the hit of the pandemic. Within the program, the small business can receive financial assistance of up to $15,000 as long as they will pass the eligibility rules of the program.
One of the best things about the program is that it is a 100% free allocation and it does not need to be repaid by its beneficiaries. The EIDL Grant has two types, the Targeted EIDL Advance and Supplemental Targeted Advance.
Types of EIDL Grant
1.
Targeted EIDL Advance - This program will provide $10,000 in financial assistance for its beneficiaries. However, some beneficiaries can receive less than 10,000 because of the EIDL Advance Funds last year.
• Applicants should be qualified for the Economic Injury Disaster Loan. However, it does not require to accept or be approved within the said loan in order to be eligible for the program.
• Applicants must have a minimum of 30% of revenue losses by an 8-week period starting from March 2, 2020
• Applicants must belong to a low-income community prior to the SBA’s standard guidelines. You can go to the SBA website to check whether you meet the guidelines.
• Applicants must have a total number of employees lower than 300.
2. Supplemental Targeted Advance – The said program will give an additional $5,000 to its eligible applicants as further assistance in recovering from their loss. However, the said program is said to be on a first-come, first-served basis upon its application process.
• Applicants must belong to a low-income community according to the SBA’s standard guidelines
• Applicants must prove that they suffered at least 50% of revenue losses by an 8-week period starting from March 2, 2020. Should provide their gross monthly revenue from January 2019 up to the recent.
• Applicants must have a total number of employees lower than 10.
Difference Between EIDL Loan and EIDL Advance Grant
Even though the mission of both EIDL Loan and EIDL Advanced Grant is to support and help small businesses and non-profit groups to recover from the effect of the pandemic, there’s a great difference between the two.
EIDL Advanced Grant is a completely free program that gives
financial assistance rather than EIDL Loan that needs to be repaid. However, the amount of limits in the EIDL Loan is higher than the EIDL Advanced Grant.
But then, these programs serve as a huge opportunity for each small business owner to have a new beginning in their industry.
How Can I Get the Economic Injury Disaster Loans Advance Grant?
To apply on any of the two Economic Injury Disaster Loans (EIDL) Advance Grant Programs, you can navigate through their portal website and start the application process.
• Applicants should wait for an email from the U.S Small Business Administration (SBA) for the application process and steps to get financial assistance.
• The U.S Small Business Administration (SBA) started sending email invites last U.S Small Business Administration (SBA). It will be a long waiting process for the applicants who do not belong to the priority groups.
• For questions and inquiries, you can contact the SBA’s Customer Service at 1-800- 659-2955.
• In case of mistakes within the application process, you can re-evaluate your application by sending an email to TargetedAdvanceReevaluation@sba.gov.
• The Small Business Administration will continue to assess and entertain applicants for EIDL Advance Grant as the programs are fully funded and end with their expiration on December 31, 2021.
• For more information regarding EIDL Advance Grants, you can simply check the
official website.
Tips for the Application of Economic Injury Disaster Loans Advance Grant
1. Before applying within specific programs, be sure that you meet the eligibility requirements.
2. Prepare all of the necessary documents that you will need for the application process.
3. The U.S Small Business Administration (SBA) encourages its applicants to don’t have a second-time application so they must apply wisely.
Priority Groups in the Application Process of EIDL Advance Grant
The application process for the Economic Injury Disaster Loans (EIDL) Advance Grant has its priority groups or individuals wherein they are the ones who will be assessed or entertained first. You can see the SBA’s priorities below.
1. First Priority Group – Pertaining to the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act (Economic Aid Act), those businesses and non-profit organizations who received an EIDL Advance less than $10,000 before are the first ones to be prioritized.
2. Second Priority Group – This group includes those businesses and non-profit organizations who applied for EIDL Advance Grant before December 27, 2020, but did not receive the said financial assistance will be prioritized.
Documents You Should Prepare for the EIDL Advance Grant Application
Upon applying for any of the two programs, you can see below the required documents that you will need for the application process.
• Applicants must complete the whole process of the 2019 Federal Tax Return.
• Applicants must provide their gross monthly revenue starting January 2019 up to the recent. (This is to validate whether they met the qualifications regarding their revenue loss)
• Applicants should also sign the IRS Form 4506-T electronically. (This is for the request tax information of the applicants that will be done by the Small Business Administration)
