Last week, SBA Administrator Isabel Guzman announced that the EIDL Grants will begin to open up to more people in June. Reports are coming in that new invites are now being sent out to people — inviting them to apply for the $10K Targeted EIDL Grant and $5K Supplemental Targeted Grant. Here's what you need to know and what, if any, action, you can take now.
A Quick Recap of EIDL Grants
In March 2020, the CARES Act appropriated $20 billion for "EIDL Advances" — grants that would go out to small businesses and independent contractors (anyone with 1099 income) as a way of helping people quickly. These grants were $1,000 per employee.
By June 2020, around 5 million EIDL Advances had been distributed and the funding had run out. This left approximately 2 million applicants without any funding.
In December 2020, an additional $20 billion was appropriated for Targeted EIDL Advances, and the SBA started to distribute these in March — but there's still 95% of funding available for this program.
Who's Been Invited to Targeted EIDL Grants So Far?
There were two groups the SBA has sent invites to before this week but the one commonality — they all applied for EIDL loans (and checked the Advance box) before December 27, 2020.
These included 1) people who received part of the $10,000 Grant last year and 2) people who applied last year but didn't receive anything.
If you believe you fall into this group but haven't received an invite yet, here's what you can do. Or if you've been rejected for some reason after applying for a Targeted Advance, here's how you can request reconsideration.
Why Have So Few People Been Approved for Targeted EIDL Grants?
As of the latest data, only around 130,000 people — small business owners and individuals — have received the Targeted EIDL Grant, topping up to $10,000, and only around 60,000 have received the Supplemental Targeted Advances — an additional $5,000 for small businesses with more revenue decline. Here's state-by-state Targeted EIDL Grant approvals.
So, why have so few been approved? According to our SBA contact and what we've heard from people, it's mainly due to eligibility. Significantly less people fall into the "low-income community" provision. This is frustrating for millions of people who believe they're deserving of the full $10,000 — let alone additional $5,000 — but this also means more money is available for others.
Who's Being Invited To Targeted EIDL Grants Now?
95% of the new Targeted EIDL Grant funding is still available — approximately $19 billion — and now the SBA is inviting new folks to apply.
The SBA right now is prioritizing people who've applied for EIDL loans. So, if you have applied for an EIDL loan this year, using the SBA EIDL Loan application form, according to the SBA, you should be in the queue for an invite.
In some cases the SBA may pre-screen eligibility, but based on what we've heard, the SBA has been inviting people, even if there address may not qualify, in case their business address has changed over the past year.
How Can I Get a Targeted EIDL Grant Invite?
At the moment, to improve your odds of getting an invite from the SBA, you can do 2 things: First, if you're considering an EIDL Loan, or think that might be a good option for you business, you can apply here. Second, if you have already applied in the past, wait a few days or so (we'll keep you updated if you subscribe to our YouTube channel — highly recommended). If you still haven't heard, you can check in with the SBA, by emailing TargetedAdvance@SBA.gov.
How Many Targeted EIDL Grant Approvals Have There Been?
We've just posted the latest Targeted EIDL Grant data and it show's an average weekly growth rate of 12%. We go over every state's approval growth rate and our predictions for how many approvals will happen this coming week.
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