Breaking: Targeted EIDL Grants Program Essentially Over

A bipartisan group of lawmakers in the Senate worked together over the weekend to detail the new $1 trillion infrastructure bill. The 2,702 draft text of the bill was released which includes re-appropriating COVID related spending, including spending from the SBA's Targeted EIDL Grant funding. In this quick post we'll go over what this means for the future of the $10K Targeted EIDL grant program.

Infrastructure Bill Takes $17.5B from Targeted EIDL Grant Funding

As outlined in the draft bill text in Section 90007, there is a "rescission of Covid-19 appropriations" from SBA allocated funding.

Included in this rescission is $17.5B of Targeted EIDL Advance funding that is "permanently rescinded".

In the Consolidated Appropriations Act, 2021, $20B was set aside for the Targeted EIDL Grants — essentially $10,000 top ups for small business owners who qualified.

Many Saw The Ending of the Targeted EIDL Grant Program Coming

As we reported last week, many suspected that the unspent Targeted EIDL grant funds would be reallocated to help fund the infrastructure bill. Due to the restrictive eligibility requirements when the Targeted EIDL grants funding was approved — namely the "low-income community" provision — the majority of businesses did not qualify for the $10K EIDL grants. The SBA tried to increase EIDL eligibility, but after 7 months has only managed to approve around 300,000 business owners for these grants.

In the meantime, the SBA continues to approve people for EIDL loans — the up to 24 months of working capital — and expects to approve the majority of all businesses in the next couple weeks.

Finally, despite the bad news for the Targeted EIDL grants, other SBA funding and private funding opportunities do exist, and we continue to post about these on the Skip app.

📌 Join nearly 100,000 others getting early access to grants and other funding opportunities. We've published new grants today — don't miss out on new grants and low-interest capital.