What Is the $10,000 SBA EIDL Grant?

As part of the SBA’s Economic Injury Disaster Loan (EIDL) program, you can apply for an EIDL grant of up to $10,000 that does not need to be repaid.

Here’s everything you need to know about the grant.

What is the EIDL grant?

The CARES Act passed in March 2020 introduced the grant to pay SBA EIDL applicants an advance on their EIDL loans. These advances were treated as tax-free grants and did not need to be paid back.

With the newest second round of stimulus, additional funding was added to the grant program, but this time it’s specifically for low income communities. It offers previous and new applicants alike an opportunity to receive the $10,000 grant.

How much will I get?

The SBA is offering businesses the opportunity to receive the grant even if they already received a grant before.

In 2020, the EIDL grant was limited at $1,000 per employee up to a maximum of $10,000 per business.

In 2021, businesses that received a grant for less than $10,000 can apply for the difference. So if a business received a $2,000 grant with their EIDL, they are eligible to apply for $8,000.

For businesses that did not receive a grant due to a lack of EIDL funding, they can now apply for the full $10,000, no catch.

How do I get the EIDL grant?

In 2020, it was as simple as ticking a box in your SBA EIDL loan application. The EIDL grant is not included by default, and must be officially requested. It was very easy to request—just checking the box indicated that you would like to be considered for the up to $10,000 advance.

Further reading: How to Fill out Your SBA EIDL Loan Application.

When will I get the EIDL grant?

According to the SBA, you’ll receive the grant “within days” of completing your application.

This, unfortunately, brings us right back to the unpredictability of the SBA’s processing times. We simply don’t know how long it will take the SBA to actually process these requests and deposit the funds.

When the SBA does process your request, however, the grant will be automatically deposited into your bank account.

At Bench, we’re helping businesses navigate the stimulus funding, including assisting them with PPP forgiveness. From what we’ve seen from our clients who applied for the EIDL grant, the deposit is being made with no email notification beforehand. Keep an eye out on your account balance if you’re waiting for it.

Do I have to pay the EIDL grant back?

While the SBA refers to this program as an advance, it was written into law as a grant. This means that the amount you are given through this program does not need to be repaid, even if your application is ultimately rejected. There will be no interest charged on this amount.

Do I need to return the grant if I don’t get the EIDL?

No, you are allowed to keep the EIDL grant even if you don’t qualify for the EIDL loan, or you decide to decline the EIDL funding.

Your EIDL loan offer will automatically expire after 60 days if you do not sign the loan agreement.

Is the grant given to everyone who applies?

While we don’t know the specific terms yet, the bill that was passed indicates that grants will only reopen to businesses in low-income areas. We will know more once the SBA releases guidance and an application is made available.

Other COVID-19 resources

Want to know more about the EIDL loan program?

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What’s Bench?

We’re an online bookkeeping service powered by real humans. With Bench, you get a dedicated bookkeeper and powerful reporting software for a crystal clear view of your financial health. All of our services are eligible expenses for PPP forgiveness, and we’ll even provide support in applying for the PPP (or getting that loan forgiven). Whatever happens next, we’re right there with you. Get started on a free trial today.


This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein.

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