You are correct. 16(A) for 1120S. Sorry.
Yes, expenses paid with the grants are deductible.
EIDL Advances Are Not Taxable; Expenses Paid Are Deductible
The new stimulus law provides that the EIDL advances are not taxable income. And otherwise deductible business expenses paid with EIDL advances are tax-deductible.
My understanding is that CA is taxing the EIDL advances so it may be possible to show a profit to CA but a loss to Federal. This states:
The FTB has just clarified that EIDL (Economic Injury Disaster Loan) advance grants are taxable to California.
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