Freelancers can secure a $1,000 federal financial grant
The Small Business Administration (SBA) introduced a $1,000 grant program aimed at helping small businesses and certain professionals affected by the COVID-19 pandemic. Known as the Targeted EIDL Advance, this initiative was part of the Economic Injury Disaster Loan (EIDL) program.
The grant was available to a wide range of professionals, including freelancers, gig workers, doctors, lawyers, and small business owners. It was designed to help cover operating costs during these challenging times. Notably, this grant money did not need to be repaid, making it a valuable resource for those in need.
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The grant money was a one-time payment and was not a loan that needed to be repaid. It was possible to receive the extra $1,000 within 15 minutes of completing a simple online application.
However, it's important to note that the EIDL and related grant programs ended in 2021, so new applications for the $1,000 grant are no longer available as of 2025.
For current SBA assistance, small business owners with losses due to COVID-19 can apply for an Economic Injury Disaster Loan of up to $150,000. To do so, you need to confirm that your business was affected by a declared disaster (such as COVID-19), prepare the necessary documents, and apply online via the SBA website or call the SBA contact center at 1-800-659-2955 to request paper forms or find a Disaster Recovery Center near you.
It's essential to understand that these loans are not grants and will need to be repaid. For loan forgiveness or repayment assistance, you can contact the SBA directly.
In addition to loans, companies can use two forms of financing to raise capital for business needs: equity and debt financing. Equity financing involves selling ownership shares of a company to investors, offering the advantage of not having to repay the funds. However, investors may expect a return on their investment. On the other hand, debt financing involves borrowing money that must be repaid with interest. Both forms have their unique benefits and drawbacks, and the choice depends on the company's specific needs, financial situation, and growth potential.
In conclusion, while the $1,000 COVID-19 EIDL grant program is no longer accepting new applications, the SBA continues to offer disaster loans through the EIDL program for declared disaster areas. For current SBA assistance, you can apply for disaster loans via the SBA’s disaster loan process. For loan forgiveness or repayment assistance, you can contact the SBA directly.
Freelancers and small business owners who received the $1,000 Targeted EIDL Advance grant can use it to cover their personal-finance or business expenses, as the money does not need to be repaid. However, current SBA assistance for small businesses affected by COVID-19 includes obtaining an Economic Injury Disaster Loan of up to $150,000, but these loans are not grants and will need to be repaid.
