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EIDL Updates - Yes, You Really Were Supposed to Get 10,000!

Today we will discuss the change to the EIDL (Economic Injury Disaster Loan) program. Recall, there are two parts of the EIDL - the Advance (Grant) up to $10,000 and the long term (30 years) loan. Let's talk about the changes to the $10,000 Advance (Grant) first:

EIDL EXISTING GRANT RECIPIENTS (you received a grant in 2020)

If you remember way back when (last March) when the EIDL Advance program was rolled out the CARES Act stated that grant recipients will receive $10,000. The SBA guidelines stated that the Advance amount was limited to $1,000 per employee up to $10,000.

Congress was not happy about this interpretation saying this was not the intent of the Advance program. Every eligible recipient was to receive $10,000. The new law fixes this.

The Big One: If you received an EIDL Advance of <$10,000 in 2020:

The new Act requires the SBA to develop procedures for any business that did not receive the full $10,000 Advance to reapply and receive the difference of what they received and $10,000.

So if you received a $4,000 EIDL Advance, you will be able to reapply and receive the additional $6,000!

The Other Big One: EIDL Advances are not taxable and DO NOT reduce PPP forgiveness. Any borrower that has filed for forgiveness and the EIDL advance reduced the forgiveness will receive this advance back plus interest through their lender.

The SBA has not released this process as of 1/12/21.


EIDL Advance fund is replenished with $20 Billion to be distributed to low-income communities first. Requirements:

  • Business is located in a low-income community (to be defined); AND has suffered an economic loss of greater than 30 percent 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.

  • The business employs not more than 300 employees.

  • EIDL Advances now can take up to 21 days (previously three days).


The new law does not make any changes to the existing loan program. Here are the basic details:

  • SBA Loan up to $2 Million used to pay fixed debts, payroll, accounts payable, and other bills

  • 30 year fixed rate 3.75% for profit; 2.75% nonprofit

  • Deferred payments for one year (Interest still accrues)

  • Loans issued directly from the SBA (not banks)

  • Small businesses, nonprofits, sole proprietors, and independent contractors can apply

  • Nonprofits include any private nonprofit, including charitable organizations such as churches and private universities.

  • Loans <$200,000 no personal guarantee required

  • Application available:

Coming up this week:

Tax law changes that benefit individuals and businesses

Shuttered Venue Grant program


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