EIDL Grants and PPP Portals are Reopening for Business Assistance in 2021

Jeffrey Simmons
Published Jun 1, 2024

The nation's two most popular programs, EIDL and PPP, are back to assist gig workers, sole proprietors, small and medium-sized businesses. Many businesses have exhausted their first round of funding for 2020; Congress has approved new funding through CARES Act II.

The portal for the new Economic Injury Disaster Loan grants 'EIDL' will become available on January 17, 2021. Businesses can get up to $10,000 in EIDL advance grants, usually $1,000 per employee, even if you applied last year and received funding.

The EIDL advance grants were part of the original CARES Act, confirmed by Congress in March 2020. The popular program exhausted the free grants after two rounds of funding from Congress last summer.

The program has returned as part of the new CARES Act extension. Perhaps, suppose businesses received the first round of funding but was told it was not an advance. In that case, they can get those amounts that were less than $10,000 forgiven with authorization from the Small Business Administration and the lending commercial or local bank.

Furthermore, if a business did not receive the full $10,000 grant, the registered agent can apply for the new grant funding difference. Recipients who had received funding in 2019 will have priority over new applicants for 2021.

EIDL Advance

The EIDL loan portion of the program is quite generous. Businesses can get up to $2 million in combination loans with payback terms of up to 30 years. The finance charges range from 2.75% for non-profit agencies and 3.75% for the average for-profit company. You have a 12-month deferment period before payments start on the new loan.

The SBA will perform a credit check to verify your business before funds are dispersed. The grants are directly deposited into your bank account. Make sure the name of the company matches your bank account. Otherwise, you will not receive the funds.

Also, to receive the loan, you will need an established minimum credit score in the 500s. Happenchance, you are denied, you can write SBA a letter requesting reconsideration. You may want to show that your credit is up to date and that all your loans are successfully in repayment.

Loans do not require a personal guarantee. If you need more than $25,000, you will need collateral, including business assets like real estate, office equipment, and machinery.

The Portal

SBA will keep the portal open until December 31, 2021. Experts expect the EIDL advance grants will go fast, on a first-come, first-serve basis. Applicants do not want to wait to apply for funds since they may quickly be exhausted.

For the second round of grant funding, the SBA will prioritize companies that have had a 30% reduction in revenues for any eight weeks from March 2, 2020, to December 31, 2021, compared to the same eight-week period of 2019.

Eligible Businesses

So that you can participate in the first round of funding, your company must be in a low-income community. The federal government has a map where you can type in your address to determine your eligibility. Click here. The other eligibility requirements include:

  • Companies must have less than 300 employees

  • Companies must have been in business before January 31, 2020

  • Companies must have had a 30% reduction in revenues for an eight-week period


You will be glad to know that the EIDL grant funds will not be counted as taxable income. Once you make your application, the SBA has 21 days to approve and disperse funds. The SBA customer service phone number is 1-800-659-2955, or email an agent at disastercustomerservice@sba.gov.


You can use the EIDL grant and loan funds to pay for payroll, health insurance, rental payments, insurance, taxes, inventory, and utilities. If needed, you also apply for the Paycheck Protection Program. However, you cannot use dispersed loans from both programs to pay for the same items. The funds must also go to separate expenses.

Paycheck Protection Program

The PPP has received $284 billion from Congress. The maximum you can receive for the forgivable PPP loan is $100,000 per employee. The maximum aggregate cap is $10 million for first-time applicants. Companies that need a second PPP loan can obtain up to $2 million. The hard-hit industries of hospitality can get up to 3.5 times their average payroll costs.

Like the EIDL advance, businesses cannot have more than 300 employees. The forgivable loan will cover a period of eight to 24 weeks of business operational expenses.

SBA will start taking applications on January 11 and January 13 for companies that apply first through local community banks.

Women and minority-owned businesses are given priority. Afterward, the application portal will open for small and medium-sized enterprises. The final day to apply for PPP will be March 31, 2021.


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