Stimulus Small Business Eidl

We don t know exactly how sba grants in 2021 will work so be sure to check back with us here at merchant maverick for a full rundown on how the new eidl grants operate once that information has been released by the sba and irs.

Stimulus small business eidl. During the pandemic all small businesses became eligible. Eidl loan applicants can receive emergency loan advances of up to 10 000 from the sba. Called eidl advances they offered 1 000 per employee to qualifying businesses up to a maximum of 10 000.

The qualification rules for eidl grants have changed in this round from the first round of eidl grants also known as eidl advances in the cares act. The economic injury disaster loan program eidl has long been a part of the us small business administration sba. Eidl grants will only be available to businesses in low income communities whose revenue dropped at least 30 over any eight week period since early march relative to the same time in 2019.

The bill earmarked 20 billion for eidl grants which are grants of up to 10 000 for small businesses alongside the 284 billion earmarked for forgivable ppp loans. The stimulus bill refunds the eidl loan program for businesses in low income communities. Moreover ppp loan forgiveness is not reduced by the amount of such advances.

Businesses in low income communities that received an eidl can get a grant equal to the difference of what they received and 10 000. Included in the stimulus package that congress passed this week is funding for more eidl grants for small businesses. The stimulus bill provides that these advances are tax free.