I must again reiterate my aversion to debt. This should only be considered if it is necessary. If you don’t have other choices, and you need it to stay in business, then certainly avail yourself of this program.
Please don’t do this just because. Make sure that you have a plan for getting out of debt before you go in. Being completely out of debt is the easiest and most comfortable way to operate a business.
That being said, it is possible if you have already received the $150K loan to get it increased. I’m not going to say that this is easy. It is certainly not automatic.
Please don’t think that I am making any sort of guarantee, but the EIDL Program by definition is supposed to cover an economic injury. If you can prove that the $150K you received does not cover it, then it is possible to get the loan increased up to the limit of $2M.
In order to do this, one will need to have financial statements prepared by a decent public accountant (I wonder who that could possibly be). These will need to show your operational results prior to the lockdown, and during.
Secretary Carranza of The SBA, when testifying in front of Congress, just got done telling them that the EIDL would cover six months of your operating expenses. As such, it is certainly possible to get this loan increased.
If and only if this is a necessity, please take the following steps.
The email address that should be used is PDCRECONS@SBA.GOV.
In the tag line write: Increase in EIDL Loan #(Please add your EIDL Loan number here)
Address it: To Whom It May Concern
I’m writing today to request an increase in my EIDL Loan. I received the initial $150,000 loan on ____.
Attached you will find my 2019 Income Tax Return, Form 4506T, my bank statements from the last 9 months, as well as financial statements showing my operating results from before and during the forced lockdown.
The second paragraph should include who you are, what you do, and how well you were doing. Such as…
We are a seven person public accounting firm in Chicago that was growing at a rate to 10% per year when the forced lockdown took place. As per my bank statements that are attached, we were generating revenues in January and February of $150,000. Our bank statements and financial statements show that we had a revenue decrease of (whatever percent) once the lockdown was put into place. As a result we clearly suffered an Economic Injury. of ___?___. Therefore, I respectfully request an EIDL Loan increase of ___?___.
If we were to get a loan we could pay our rent, payroll, utilities, and business credit cards. (EIDL Appropriate uses). It will not be difficult for us to make a payment of __?__ (use a loan calculator to figure your payment) because our business was strong going into the lockdown. I am available at any time via telephone at (___) ___-___. We look forward to your consideration and look forward to working with you.
Make sure to include
2019 Business Income Tax Return
Form 4506T (Filled out and signed)
January through September 2020 bank statements
Professionally compiled Financial Statements from the period before the lockdown and during.
The accompanying financial statements can be the key to prove your economic injury. Make sure they are signed by a competent public accounting firm so that they aren’t questioned. If you need help in putting this together, please contact our offices today.
Let me leave you with this.
Our Governor signed an order yesterday rolling back many of our reopening guidelines. In the order bars and restaurants may now only provide service outdoors and capacities are reduced to 25%.
I can’t get excited about eating outside when the temps are in the thirties.
Something tells me that this is going to be a long, hard winter. It may redefine the word misery.
I’ve written extensively about the mental health crises that this pandemic is producing. Further, I’ve discussed the problems with addiction that are now endemic.
This is a one, two punch in the middle of a nightmare for many. They are again shutting down businesses when people can’t pay their bills as it is. You need to hang on. This will end. Don’t allow this to be the end of you as well.
Find constructive ways to deal with your stress. Exercise. Write a book. Make some wine. These have certainly helped me. Spend some time with your family. Tell them how much you love and respect them.
We’re going to get through this. You and me, shoulder to shoulder, but do so knowing that we are here to help.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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