It happens sometimes that your EIDL loan approval takes too much time. It’s either that or it doesn’t get approved at all. And there are just multiple reasons why, and the first I can give you is that the delay for the EIDL loan may be because there are so many people applying for the loan at the same time. But other than that, let’s tackle the problems.
Escalating your EIDL!
The Economic Injury Disaster Loan, just to freshen up everyone’s minds, is the loan program provided to small businesses and small agricultural cooperatives and the like by the SBA. It is to help those who have been affected by the pandemic.
However, sometimes your EIDL application is rendered ineligible by the agency. And the reason for why it’s been considered as such would be given by the SBA. Some of these reasons could be because you operate an ineligible business for other reasons. Let’s explain them more:
- Operating an ineligible business – you must employ 500 or even less than that amount of employees to be eligible for EIDL, and this rule applies to agricultural enterprises, private nonprofits, and faith-based organizations. As such, larger businesses are definitely already unqualified due to the nature of their manpower. Another factor is the background of your business, typically loan packaging, illegal activities (obviously), speculation, multi-level sales distribution, gambling, investment, or lending.
- Unsatisfactory credit – the SBA follows a set of requirements or standards which are not published.. and well, if you don’t meet these requirements, your application would be denied.
- Unverifiable information – in the case that your application was rejected due to information that they could not verify, it would be best to provide them with the details that they wish to verify. But make sure to do this at least within seven days of being notified because then it’d be too late.
- No economic injury – this factor isn’t as surprising especially since they’re looking to help people who have been affected by calamities or the pandemic as it applies currently.
- Personal reasons – one such example is if you have had a felony within the last five (5) years. Or by engaging in services or distributing products that are not permissible by the court. And, unfortunately with this, you probably won’t be able to ask for any reconsideration.
To have your application reconsidered, you have up until 6 months to do so. firstname.lastname@example.org would be the email that you must file your reconsideration to or the address: U.S. Small Business Administration Disaster Assistance Processing & Disbursement Center 14925 Kingsport Road Fort Worth, Texas 76155
Make sure that you have included all the details such as
- Your application number
- Business name
- Borrower’s name
- Any information required to address the reason(s) your original request was declined
- Any additional information that may assist in processing your request
- Most recent federal tax returns for the business, prior to the pandemic
- Tax ID/EIN or Social Security Number
- IRS Form 4506-T completed and signed
- Copy of a voided check from your business checking account
Make sure to also include a note requesting the reconsideration of your declined EIDL application. And yeah, the SBA may review your application again, but there’s no telling as to how long they would be doing so. After all, you aren’t the only one filing so during these times. Just be patient.