What Was the EIDL Advance?
Learn what the EIDL Advance and Targeted EIDL Advance were, how these emergency grants worked, and why they are no longer available.
The EIDL Advance was an emergency grant program that provided up to $10,000 to small businesses affected by COVID-19. Unlike the EIDL loan itself, the Advance did not need to be repaid. This program is now closed and no longer accepting applications.
How the Original EIDL Advance Worked
When COVID-19 first hit in early 2020:
- Application: Businesses could request up to $10,000 as an advance when applying for an EIDL loan
- Amount: $1,000 per employee, up to $10,000 maximum
- Speed: Designed to provide quick emergency funds
- Grant nature: The Advance was a grant — no repayment required even if the loan was declined
Initial Limitations
Due to overwhelming demand, the initial EIDL Advance was capped at $1,000 for many applicants, not the full $10,000 originally promised.
Targeted EIDL Advance
In early 2021, Congress created the Targeted EIDL Advance to help businesses that:
- Were located in low-income communities
- Experienced revenue decline of 30% or more
- Had 300 or fewer employees
- Had received less than $10,000 in the original Advance
Supplemental Targeted Advance
The Supplemental Targeted Advance provided an additional $5,000 to the hardest-hit businesses:
- Required 50% or greater revenue decline
- Had to be in a low-income community
- Must have had 10 or fewer employees
- Combined with Targeted Advance, businesses could receive up to $15,000 total in grants
Current Status
All COVID-19 EIDL Advance programs are now closed:
- Original EIDL Advance: Closed in July 2020
- Targeted EIDL Advance: Closed in December 2021
- Supplemental Targeted Advance: Closed in December 2021
- No new applications: These programs are not expected to reopen
Fraud Concerns
The SBA continues to investigate EIDL Advance fraud. Businesses that received advances they were not eligible for may face repayment demands, penalties, or criminal prosecution.
Tax Treatment
EIDL Advances were generally treated as:
- Not taxable as income (per federal legislation)
- Expenses paid with Advance funds were still deductible
- State tax treatment varied — check with your tax advisor
If you received an EIDL Advance, keep your documentation showing eligibility and how funds were used. The SBA may audit recipients for several years.
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Read more →Important Disclosure
Not Financial Advice: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. You should consult with qualified professionals before making any financial decisions.
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