Earlier this spring, President Biden signed into law the American Rescue Plan. Part of that plan included $10 billion in additional funds for the Economic Injury Disaster Loan(EIDL) Targeted Advance Grants and another $5 billion in Supplemental Grants for businesses meeting the eligibility criteria.


The CARES Act passed on March 27, 2020 included grants (up to $10,000) in the form of a targeted advance to businesses who applied for an EIDL loan. Later, the SBA determined targeted grants would be allocated based on a rate of $1,000 per employee. However, the allocated targeted advance funds were exhausted before all eligible applications could be filled.

Another relief package – The Economic Aid Act – passed and was signed into law on December 27, 2020. It also included additional funding for EIDL Targeted Advance grants. Then the American Rescue Plan was recently signed into law in March 2021.

New $10,000 EIDL Targeted Advance Grants

Part of the new American Rescue Plan was additional funding for EIDL Targeted Advance grants. To qualify for the newest round of funding, a business must have previously applied for an emergency EIDL advance and meet the following criteria. The business must:

  • Be located in a low-income community*
  • Have suffered at least an economic loss** of at least 30%
  • Not employ more than 300 employees
  • Qualify first as an eligible business under the CARES Act by:
    • Being a small business, cooperative or ESOP Tribal concern with fewer than 500 employees
    • Operating as an individual sole proprietorship with or without employees, or as an independent contractor; or a private non-profit or small agricultural cooperative.
    • Having been in operation after January 31, 2020
    • Being directly affected by COVID-19

How to Apply

First, if you have already received an EIDL Targeted Advance of less than $10,000, the SBA either has or will contact you by email with instructions on how to apply for this additional new round of funding.

Second, businesses that applied after December 27, 2020 but did not receive any funds will be contacted by the SBA next. Do Not contact the SBA as it only slows down the process; be patient as they will contact you – but it takes time.

Third, businesses meeting the eligibility criteria, but have not previously applied for an EIDL can do so through December 31, 2021 or until funds are exhausted at SBA.gov. However, they will receive a low-interest rate EIDL loan but are not eligible for the new round of EIDL Targeted Advance grants.

Supplemental Targeted Advance Grants

Another part of the American Rescue Plan was Supplemental Targeted Advance Grants. Under this COVID-19 relief program, an additional $5,000 in Targeted Grants are authorized to the smallest and hardest hit businesses meeting the above EIDL Targeted Advance requirements. Even if your business already received an EIDL Targeted Advance up to the $10,000 maximum, it may be eligible for the Supplemental … if it meets these two additional requirements:

  1. Suffered an economic loss greater than 50%
  2. Employ 10 employees or less

Supplemental Targeted Advance grants are in addition to any other funds received under the CARE Act or Economic Aid Act and because they are a grant, they are eligible for forgiveness provided the money is used properly.

Paycheck Protection Program (PPP)

To keep workers on the payroll, eligible small businesses may apply (until May 31, 2021) for a PPP loan. There are two types of PPP loans: First Draw and Second Draw.

First Draw

If your business never received any PPP money, then apply for a First Draw.  PPP loans are primarily designed to help meet payroll costs including benefits. However, the money may also be used to help pay mortgage interest, rent, utilities, worker protection costs related to COVID-19 and other costs and expenses of operation.

Second Draw

Businesses having already received a First Draw loan may be eligible for the Second Draw if they have (or soon will have) exhausted First Draw funds on authorized expenses. Second Draw applicants must have less than 300 employees and can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 or 2020. Loan amounts are calculated at 2.5 times the average monthly 2019 or 2020 payroll costs (up to $2 million).

First and Second Draw Loans are requested through your normal lender; in addition, PPP loans may be forgiven if the funds are used to pay authorized expenses eligible under the program.

Finally, COVID-19 Relief Programs change rapidly. Be sure to check at SBA.gov for the latest information.


* A low-income community is defined as: “any population census tract if the poverty rate for such tract is at least 20%, or in the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80% of the greater of statewide median family income or the metropolitan area median family income.” To help identify low-income census tract communities, use this SBA Tool.

**An economic loss is defined as: “The amount by which the gross receipts of the covered entity declined during an 8-week period between March 2, 2020, and December 17, 2021, relative to a comparable 8-week period immediately preceding March 2, 2020, or during 2019.”



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Kness retired in November 2007 as a Senior Noncommissioned Officer after serving 36 years of service with the Minnesota Army National Guard of which 32 of those years were in a full-time status along with being a traditional guardsman. Kness takes pride in being able to still help veterans, military members, and families as they struggle through veteran and dependent education issues.