---
kind: "section"
citation: "15 U.S.C. § 9009"
title: "15"
title_heading: "Commerce and Trade"
number: "9009"
heading: "Emergency EIDL grants"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/9009"
units:
  - "Chapter 116 — Coronavirus Economic Stabilization (cares Act)"
  - "Subchapter I — Keeping American Workers Paid and Employed"
---

# §9009. Emergency EIDL grants

- (a) **Definitions—** In this section—
  - (1) the term “covered period” means the period beginning on January 31, 2020 and ending on December 31, 2021; and
  - (2) the term “eligible entity” means—
    - (A) a business with not more than 500 [employees](/usc/15/9041.md?p=5);
    - (B) any individual who operates under a sole proprietorship, with or without [employees](/usc/15/9041.md?p=5), or as an independent contractor;
    - (C) a cooperative with not more than 500 [employees](/usc/15/9041.md?p=5);
    - (D) an ESOP (as defined in [section 632 of this title](/usc/15/632.md)) with not more than 500 [employees](/usc/15/9041.md?p=5);
    - (E) a tribal [small business concern](/usc/15/636e.md?p=6), as described in [section 657a(b)(2)(C) of this title](/usc/15/657a.md?p=b-2-C), with not more than 500 [employees](/usc/15/9041.md?p=5); or
    - (F) an agricultural enterprise (as defined in [section 647(b) of this title](/usc/15/647.md?p=b)[^1] with not more than 500 [employees](/usc/15/9041.md?p=5).
- (b) **Eligible entities—** During the covered period, in addition to [small business concerns](/usc/15/636e.md?p=6), private nonprofit organizations, and small agricultural cooperatives, an eligible entity shall be eligible for a loan made under [section 636(b)(2) of this title](/usc/15/636.md?p=b-2).
- (c) **Terms; credit elsewhere—** With respect to a loan made under [section 636(b)(2) of this title](/usc/15/636.md?p=b-2) in response to COVID–19 during the covered period, the [Administrator](/usc/15/636e.md?p=1) shall waive—
  - (1) any rules related[^2] the personal guarantee on advances and loans of not more than $200,000 during the covered period for all [applicants](/usc/15/7a.md?p=3);
  - (2) the requirement that an [applicant](/usc/15/7a.md?p=3) needs to be in business for the 1-year period before the disaster, except that no waiver may be made for a business that was not in operation on January 31, 2020; and
  - (3) the requirement in the flush matter following subparagraph (E) of [section 636(b)(2) of this title](/usc/15/636.md?p=b-2), as so redesignated by subsection (f) of this section,[^3] that an [applicant](/usc/15/7a.md?p=3) be unable to obtain credit elsewhere.
- (d) **Approval and ability to repay for small dollar loans—** With respect to a loan made under [section 636(b)(2) of this title](/usc/15/636.md?p=b-2) in response to COVID–19 during the covered period, the [Administrator](/usc/15/636e.md?p=1) may—
  - (1) approve an [applicant](/usc/15/7a.md?p=3)—
    - (A) based solely on the credit score of the [applicant](/usc/15/7a.md?p=3); or
    - (B) by using alternative appropriate methods to determine an [applicant](/usc/15/7a.md?p=3)’s ability to repay; and
  - (2) use information from the Department of the Treasury to confirm that—
    - (A) an [applicant](/usc/15/7a.md?p=3) is eligible to receive such a loan; or
    - (B) the information contained in an application for such a loan is accurate.
- (e) **Emergency grant—**
  - (1) **In general—**
    - (A) **Advances—** During the covered period, an entity included for eligibility in [subsection (b)](#b), including [small business concerns](/usc/15/636e.md?p=6), private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under [section 636(b)(2) of this title](/usc/15/636.md?p=b-2) in response to COVID–19 may request that the [Administrator](/usc/15/636e.md?p=1) provide an advance that is, subject to [paragraph (3)](#e-3), in the amount requested by such [applicant](/usc/15/7a.md?p=3) to such [applicant](/usc/15/7a.md?p=3).
    - (B) **Timing—** With respect to each request submitted to the [Administrator](/usc/15/636e.md?p=1) under [subparagraph (A)](#e-1-A), the [Administrator](/usc/15/636e.md?p=1) shall, not later than 21 days after the date on which the [Administrator](/usc/15/636e.md?p=1) receives the request—
      - (i) verify whether the entity is an entity that is eligible for a loan made under [section 636(b)(2) of this title](/usc/15/636.md?p=b-2) during the covered period, as described in [subsection (b)](#b);
      - (ii) if the [Administrator](/usc/15/636e.md?p=1), under [clause (i)](#e-1-B-i), verifies that the entity submitting the request is an entity that is eligible, as described in that clause, provide the advance requested by the entity; and
      - (iii) with respect to an entity that the [Administrator](/usc/15/636e.md?p=1) determines is not entitled to receive an advance under this subsection, provide the entity with a notification explaining why the [Administrator](/usc/15/636e.md?p=1) reached that determination.
  - (2) **Verification—** Before disbursing amounts under this subsection, the [Administrator](/usc/15/636e.md?p=1) shall verify that the [applicant](/usc/15/7a.md?p=3) is an eligible entity by accepting a self-certification from the [applicant](/usc/15/7a.md?p=3) under penalty of perjury pursuant to [section 1746 of title 28](/usc/28/1746.md).
  - (3) **Amount—** The amount of an advance provided under this subsection shall be not more than $10,000.
  - (4) **Use of funds—** An advance provided under this subsection may be used to address any allowable purpose for a loan made under [section 636(b)(2) of this title](/usc/15/636.md?p=b-2), including—
    - (A) providing paid sick leave to [employees](/usc/15/9041.md?p=5) unable to work due to the direct effect of the COVID–19;
    - (B) maintaining payroll to retain [employees](/usc/15/9041.md?p=5) during business disruptions or substantial slowdowns;
    - (C) meeting increased costs to obtain materials unavailable from the [applicant](/usc/15/7a.md?p=3)’s original source due to interrupted supply chains;
    - (D) making rent or mortgage payments; and
    - (E) repaying obligations that cannot be met due to revenue losses.
  - (5) **Repayment—** An [applicant](/usc/15/7a.md?p=3) shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under [section 636(b)(2) of this title](/usc/15/636.md?p=b-2).
  - (6) **Repealed. Pub. L. 116–260, div. N, title III, § 333(c), Dec. 27, 2020, 134 Stat. 2046—**
  - (7) **Authorization of appropriations—** There is authorized to be appropriated to the [Administration](/usc/15/636e.md?p=1) $40,000,000,000 to carry out this subsection.
  - (8) **Termination—** The authority to carry out grants under this subsection shall terminate on December 31, 2021.
  - (9) **Statute of limitations—** Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that a borrower engaged in fraud with respect to the use of an advance received under this subsection shall be filed not later than 10 years after the offense was committed.

## Footnotes

[^1]: So in original. Probably should be followed by a closing parenthesis.
[^2]: So in original. Probably should be followed by “to”.
[^3]: See Codification note below.

## Source credit

(Pub. L. 116–136, div. A, title I, § 1110, Mar. 27, 2020, 134 Stat. 306; Pub. L. 116–139, div. A, § 101(b), (c), Apr. 24, 2020, 134 Stat. 620, 621; Pub. L. 116–260, div. N, title III, §§ 332, 333(c), Dec. 27, 2020, 134 Stat. 2045, 2046; Pub. L. 117–165, § 2(b), Aug. 5, 2022, 136 Stat. 1363.)

## Notes

### Editorial Notes

### Codification

Section is comprised of section 1110 of Pub. L. 116–136. Subsec. (f) of section 1110 of Pub. L. 116–136 amended section 636 of this title.

### Amendments

2022—Subsec. (e)(9). Pub. L. 117–165 added par. (9).

2020—Subsec. (a)(1). Pub. L. 116–260, § 332(1), substituted “December 31, 2021” for “December 31, 2020”.

Subsec. (a)(2)(F). Pub. L. 116–139, § 101(c), added subpar. (F).

Subsec. (d)(1), (2). Pub. L. 116–260, § 332(2), added pars. (1) and (2) and struck out former pars. (1) and (2) which read as follows:

“(1) approve an applicant based solely on the credit score of the applicant and shall not require an applicant to submit a tax return or a tax return transcript for such approval; or

“(2) use alternative appropriate methods to determine an applicant’s ability to repay.”

Subsec. (e)(1). Pub. L. 116–260, § 332(3)(A), designated existing provisions as subpar. (A), inserted heading, struck out “within 3 days after the Administrator receives an application from such applicant” after “to such applicant”, and added subpar. (B).

Subsec. (e)(6). Pub. L. 116–260, § 333(c), struck out par. (6). Text read as follows: “If an applicant that receives an advance under this subsection transfers into, or is approved for, the loan program under section 636(a) of this title, the advance amount shall be reduced from the loan forgiveness amount for a loan for payroll costs made under such section 636(a) of this title.”

Subsec. (e)(7). Pub. L. 116–260, § 332(3)(B), substituted “$40,000,000,000” for “$20,000,000,000”.

Pub. L. 116–139, § 101(b), substituted “$20,000,000,000” for “$10,000,000,000”.

Subsec. (e)(8). Pub. L. 116–260, § 332(3)(C), substituted “December 31, 2021” for “December 31, 2020”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2020 Amendment

Pub. L. 116–260, div. N, title III, § 333(d), Dec. 27, 2020, 134 Stat. 2046, provided that: “The amendment made by subsection (c) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281).”

Except as otherwise provided, amendment by Pub. L. 116–260 effective on Dec. 27, 2020, and applicable to loans and grants made on or after Dec. 27, 2020, see section 348 of Pub. L. 116–260, set out as a note under section 636 of this title.

### Targeted EIDL Advance

Pub. L. 117–2, title V, § 5002, Mar. 11, 2021, 135 Stat. 85, provided that: Definitions.—In this section— the term ‘Administrator’ means the Administrator of the Small Business Administration; and the terms ‘covered entity’ and ‘economic loss’ have the meanings given the terms in section 331(a) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260) [15 U.S.C. 9009b(a)]. Appropriations.—In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $15,000,000,000— to remain available until expended; and of which, the Administrator shall use— $10,000,000,000 to make payments to covered entities that have not received the full amounts to which the covered entities are entitled under section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260) [15 U.S.C. 9009b]; and $5,000,000,000 to make payments under section 1110(e) of the CARES Act (15 U.S.C. 9009(e)), each of which shall be— made to a covered entity that— has suffered an economic loss of greater than 50 percent; and employs not more than 10 employees; in an amount that is $5,000; and with respect to the covered entity to which the payment is made, in addition to any payment made to the covered entity under section 1110(e) of the CARES Act (15 U.S.C. 9009(e)) or section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260).”

### Clarification of Tax Treatment of Certain Loan Forgiveness and Other Business Financial Assistance

Advance described in subsec. (e) of this section not included in gross income of recipient, see section 278 of div. N of Pub. L. 116–260, set out as a note under section 9008 of this title.

### Repeal of EIDL Advance Deduction

Pub. L. 116–260, div. N, title III, § 333(a), (e), Dec. 27, 2020, 134 Stat. 2046, 2047, provided that: Definitions.—In this section [amending this section and enacting provisions set out as notes under this section]— the term ‘covered entity’ means an entity that receives an advance under section 1110(e) of the CARES Act (15 U.S.C. 9009(e)), including an entity that received such an advance before the date of enactment of this Act [Dec. 27, 2020]; and the term ‘covered period’ has the meaning given the term in section 1110(a)(1) of the CARES Act (15 U.S.C. 9009(a)(1)), as amended by section 332 of this Act [div. N of Pub. L. 116–260].Rulemaking.— In general.—Not later than 15 days after the date of enactment of this Act [Dec. 27, 2020], the Administrator [of the Small Business Administration] shall issue rules that ensure the equal treatment of all covered entities with respect to the amendment made by subsection (c) [amending this section], which shall include consideration of covered entities that, before the date of enactment of this Act, completed the loan forgiveness process described in section 1110(e)(6) of the CARES Act (15 U.S.C. 9009(e)(6)), as in effect before that date of enactment. Notice and comment.— The notice and comment requirements under section 553 of title 5, United States Code, shall not apply with respect to the rules issued under paragraph (1).”