EIDL Advance (Grant) - SBA Updates

The SBA released guidance last evening on the SBA Advance (Grant) Program and how it will work for recipients who did not receive a grant last year after funds ran out, or received less than $10,000.

The key here: The applicant must be located in a low-income community AND demonstrate a greater than 30% reduction in revenue to receive any additional Advance.

First, the SBA will reach out to EIDL applications that already received a partial EIDL Advance (i.e. 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.

Next, the 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. This group must also have <300 employees to be eligible for the Advance.

How is a Low-Income community defined?

(1)The term "low-income community" means any population census tract if—(A)the poverty rate for such tract is at least 20 percent, OR

(B)(i)in the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or

(ii)in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater statewide median family income or the metropolitan area median family income.

Source: Internal Revenue Code 43(d)e

Additional details on how SBA will identify low-income communities will be available soon on www.sba.gov/coronavirusrelief.

Here is a tool to determine if a location meets these requirements:

FFIEC Geocoding system to identify low-income communities:


We are waiting on additional details from the SBA, specifically on how to apply. What documentation will be needed to support the low-income and revenue loss requirements, and how a location is defined (is it the applicant's business address, IRS filing address, home address?)

The long term EIDL Loan is still available with the same terms as the previous (30-year term, 3.75% interest for profit, 2.75% nonprofits.)