The SBA seems to be having difficulties with their EIDL Loan and Grant Programs.
Since announcing the increase on the EIDL from $150K to $500K, I have spoken to many who have expressed concerns over the process. Many have applied, and heard absolutely nothing in return. Others have been turned down for not providing the proper information necessary to underwrite the loan.
The EIDL Grant Program is having similar difficulties. Since the additional $25B was authorized at the beginning of this year less than 5% of the money has been disbursed. Applicants for this grant are having the same basic difficulties.
There is no official news as to why, but I can tell you that the loans and grants that I have done, have all gone through. We’re talking about a process which is underwritten by machines.
As such, you cannot leave anything to chance. Ever question, no matter how ridiculous, must be answered. Every number provided must be verifiable. They’re asking for permission to get copies of your prior income tax returns to help verify the 2020 loss. As such, everything needs to match up to the penny. If not, you will probably be denied.
Once you are denied, there is no one to call. Most customers have emailed to try to overcome whatever objection that was cited in the denial letter, but I have not heard of anyone receiving a response. The SBA is terribly undermanned, given the new demands of the pandemic. As such, there isn’t much that can be done, other than continuing to email.
Let me leave you with this.
So where does that leave us?
The PPP Loan program is all but exhausted. If you can apply through a Minority or Community Development Banking Institution you have a chance of still getting the loan, but that money will dry up quickly.
The EIDL Grants and Loans seem to be a disaster. They’re sending out more rejection letters than approvals. Some are getting done, but very few.
That leaves the Employee Retention Credit.
They’re being tough on these as well, but we’ve been extremely successful in getting them done. Practice makes perfect, and there’s little or no reason not to get these done.
If you don’t, you’re leaving money on the table. Click the button at the bottom of this screen to get started today.
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