App version: 0.1.0

What Is EIDG & How Does It Differ From EIDL?

What Is EIDG & How Does It Differ From EIDL?
Susan Guillory

Susan Guillory

Updated December 27, 2021
Share this article:
Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
You may be familiar with the Economic Injury Disaster Loan (EIDL) offered by the SBA, but are you familiar with EIDG? If you’re a small business that has suffered greatly because of the COVID-19 pandemic, you need to know: What is EIDG, and how can I benefit from EIDL grants?Here we’ll compare EIDL vs EIDG and walk you through your options to getting financial assistance right now.

What Is EIDG? 

The SBA EIDG stands for Economic Injury Disaster Grant and is an EIDL grant of $1,000 per employee given to small businesses who meet certain criteria.When you apply for an EIDL loan, you will automatically be considered for one or both of the two EIDGs available. If you meet the criteria (mentioned below) you will receive up to $15,000 in money that does not have to be repaid.Want more info on the EIDL program? Learn more about the EIDL meaning and EIDL loan amount calculator tool.

EIDL Targeted Advance 

As mentioned, there were two EIDGs. The first is the Targeted Advance. This EIDG provides up to $10,000 to businesses that:
  • Are in a low-income community
  • Have experienced more than a 30% reduction in revenue over an eight-week period starting March 2, 2020, or later
  • Have 300 or fewer employees

EIDL Supplemental Targeted Advance

The second EIDL grant is the Supplemental Targeted Advance, which provides an additional $5,000 that doesn’t have to be repaid to businesses that:
  • Are in a low-income community
  • Have experienced more than a 50% reduction in revenue over an eight-week period starting March 2, 2020, or later
  • Have 10 or fewer employees
If your business is eligible to apply for the EIDL program, you are eligible to apply for the EIDG grants if you meet the criteria above. Sole proprietors, independent contractors, and private nonprofits may apply, but agricultural enterprises may not.To apply, submit your EIDL application. The SBA will review your application to see if you qualify for either or both of the EIDGs, and if so, will send you an invitation to apply. If approved, your EIDG deposit will be made to the same bank account where you received your EIDL funds.

EIDG vs EIDL vs PPP 

Not to throw more confusion your way… but there’s also the Paycheck Protection Program (PPP), which the SBA offered to small businesses during the pandemic.EIDG vs EIDL vs PPP. That’s a lot of acronyms to understand when it comes to emergency business loans and grants! Let’s break it down so you understand the differences.The most important thing for you to know when it comes to PPP vs EIDL loans is that the PPP program is no longer open.As for the EIDL program, there is still time for you to apply, but act fast. Know that there are a few EIDL use regulations, though those have eased up with recent changes to the program. You may want to also learn more about hazard insurance and EIDL, since you may be required to carry it. 

Is the EIDG Still Available?

Both the EIDGs — the Targeted Advance and Supplemental Targeted Advance — are available currently. Applications for the EIDL will only be accepted until December 31, 2021, but those applications, as well as those already submitted for the EIDGs, will continue to be reviewed after the deadline.One word of note: Any email regarding the EIDL or EIDG should come from an email that ends in @sba.gov. There have been some instances of EIDL fraud and scams, so verify the source and never give important private data to someone via email or over the phone. You can always log into your SBA portal to do so. 

What Aid Is Still Available in 2021? 

Now that EIDL availability is dwindling as the year winds to a close, you may want to explore other options for small business financing.

Small Business Debt Relief

Another way the SBA is helping struggling small businesses is through the Small Business Debt Relief program. The SBA will pay six months of principal, interest, and associated fees for all 7(a), 504, and microloans approved up to September 27, 2020. EIDL and PPP loans are not included.

SBA Express Bridge Loan 

The SBA also offers its Express Bridge loan program, which provides fast financing to businesses in declared disaster areas (which covers all of the U.S. during the COVID-19 pandemic). These loans are intended to be interim loans to cover disaster-related expenses while businesses wait for longer-term financing.Businesses can borrow up to $25,000 with a repayment period of seven years.

Employee Retention Credit 

While it’s not financing per se, the Employee Retention Credit can help you put money back in your business’ pocket. It’s a fully refundable tax credit for eligible employers that provides 50% of qualified wages and health plan expenses.This tax credit covers wages paid after March 12, 2020, and before January 1, 2021, and can provide up to $5,000 in credit per employee.

Conventional Small Business Loans 

As we move further away from the initial wave of the pandemic and its economic impact on small businesses, we’re seeing more of the SBA’s emergency aid programs closing. But that doesn’t mean you don’t still have options when it comes to financing.Banks and online lenders offer a variety of financial products, from short- and long-term loans and lines of credit to business credit cards, merchant cash advances, and invoice financing. The better your credit, the more options you’ll have, and it’s worth the time investment to find the option that best suits your business’ needs.

Explore Lantern's Small Business Loan Options

Not sure where to start in your search for small business financing? You can compare business loan terms in minutes. 
Photo credit: iStock/PeopleImages
This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. SOLC112269

About the Author

Susan Guillory

Susan Guillory

Susan Guillory is the President of Egg Marketing, a content marketing firm based in San Diego. She’s written several business books, and has been published on sites including Forbes, AllBusiness, and Cision. She enjoys writing about business and personal credit, financial strategies, loans, and credit cards. Follow her on Twitter @eggmarketing.
Share this article: