If you’ve already received an EIDL Loan, the chances are high that you are now eligible to receive additional funds. The cap on the loan was raised from $500K to $2M on September 8th of this year.
This is not a “Forgivable Loan” or “Free Money”. It offers a thirty year amortization schedule with interest rates on a for-profit business of 3.75%.
It’s only available to businesses with less than 500 employees, having certain NAICS codes. For a complete list of those codes, please go to the SBA website.
In order to determine your eligibility, you will need to apply.
How To Request An Increase
Please log into the online portal from the SBA for requesting EIDL’s. Upon entrance, you will see a button that says either “Request and Increase” or “Quote”. This will show your eligible amount.
The “Request and Increase” button will take you to the application for up to $2M. If you don’t see it, you probably aren’t currently eligible.
If you see a quote displayed and hit the “Review and Accept Amount” button, it will confirm your requested amount. The max loan is the difference between your 2019 sales, less your Cost of Goods Sold, multiplied by a factor of two.
Additional Paperwork May Be Necessary
You will need to sign Form 4506T, allowing the SBA to request a tax transcript from the IRS. Please make sure that the address on the application matches the address on your 2019 returns. If you make this mistake, your loan application will be denied.
If you made a mistake on your application, received a denial based upon “unverifiable information”, or haven’t heard anything for some time, then email email@example.com. Your communication should include at the least the loan number, company name, owner name, address, and other contact information.
This is a sore spot for many. Getting issues resolved in this process may become impossibly difficult. Many have said that they emailed and received no response at all. Other email addresses that can be used are CovidIncreaseRequests@Sba.gov and DisasterCustomerService@Sba.gov.
The published wait time for amounts under $500K is three weeks and six weeks for amounts over $500K. If this is your first loan and you’re looking for an amount over $500K, then they say it will be nine weeks.
If I were you, I would put my app in, and not count on the money in any particular time period. Given what I’ve heard, the wait times will probably be much longer.
Let me leave you with this.
I’m not a fan of debt. The first people who went out of business in the ’08 – ’09 nightmare were the MBA’s that used to lecture me on how leverage was good.
I’m old school. I can honestly tell you that people who are over leveraged become slaves to debt and rarely make a penny. The happiest day of my life was the day I paid off my last mortgage.
If you’ve decided to do this, please don’t go into it lightly. I believe that before you go into debt, you should first know how you’re going to get out of it.
Please also realize that there are a significant number of rules that go along with the EIDL loans. Depending on which one you received and when you received it, you may be prohibited from operating your business in the manner in which you have become accustomed.
We’re all going to get through this. Let’s get through it together.
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