I’m not a big fan of debt. We have to be careful. I always tell the story of the last major real estate recession we had in 2007. I had a bunch of 28 year old MBA’s that would constantly lecture me on how debt was good. How leveraging their businesses was the easiest way to make them grow.
When the recession hit, they were the first ones to file double bankruptcies.
I tend to adhere to a more eastern philosophy about debt. It teaches us that before we go into debt, we must first know how we will get out of debt. Being a slave to your credit cards and the bank is no way to live. It will certainly keep you poor for the rest of your life.
That being said, many have received the EIDL loan under the assumption that they will not use it. Many received the $150K, have put it into a separate checking account, and forgotten that they have it. It’s their rainy day fund. They plan on simply repaying it with the interest that accrues once this is over and their businesses rebound.
If you feel that this will help our business rather than hurt it, and your application was denied, I will now show you how to get it reconsidered.
The email address that should be used is PDCRECONS@SBA.GOV.
In the tag line write Reconsideration For Denial of Loan Application # (Add the app number here)
Address it To Whom It May Concern
I’m responding to the denial letter that you sent me on ____.
Attached you will find my 2019 Income Tax Return, Form 4506T, and my bank statements from the last 9 months. (Also anything else that you might need to refute the denial.)
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 of ___?___.
If we were to get a loan of __?__ 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 reconsideration and look forward to working with you.
Sincerely,
Your Name
Title
Make sure to include
2019 Business Income Tax Return
Form 4506T (Filled out and signed)
January through September 2019 bank statements
Professionally compiled Financial Statements from the period before the lockdown and during
Whatever other evidence is necessary to refute the denial
The accompanying financial statements can be the key to prove your economic injury. Make sure that 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.
I’ll be writing on Monday about how to increase your EIDL Loan amount. The 150K limit was done arbitrarily. By definition, the EIDL Loan is supposed to cover your economic injury. It is possible to increase your EIDL Loan up to as much as $2M.
Let me leave you with this.
The City of Chicago sent out an email named Tips to Protect Chicago Businesses. It goes on to say that they are expecting “large demonstrations” no matter what the results are on the November elections.
I read it as more looting and rioting.
Be prepared. I’m not only talking to Chicagoans but also to my brothers and sister who own businesses in the suburbs. Let’s remember that some of those areas were hit harder than the city.
If you can, move your cars indoors. Make sure there isn’t anything flammable outside. Move any outdoor furniture indoors. Consider enhanced security measures. Think about altering your hours.
Please realize that this election may not be over in a day or two. This one may be contested for quite some time. Tempers are running high. It doesn’t take much for many of these people to think they have a right to break the law.
Be prepared. Be vigilant. Protect yourself, your family, and your business. 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,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
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773-267-7500
chris@accountingsolutionsltd.com
