SAN FRANCISCO, CA / ACCESSWIRE / May 2, 2022 / Economic Injury Disaster Loan (EIDL) increase requests will be accepted by the Small Business Administration (SBA) through the end of this week. The SBA has signaled the popular EIDL loan program is coming to an end for pandemic related funding. For company owners, principals, executives, and managers wondering how to apply for an EIDL loan increase for each business entity and location, urgency is crucial. Loan modification increases are still available for up to $2 million, however not for long. Professional assistance is recommended for those who do not know how to go about applying for an increase.
There is an urgent last chance SBA deadline to file for an EIDL loan increase modification request. Image Credit: 123rf / Stokket.
"The EIDL increase request deadline is very urgent. It is the last chance to get EIDL loan funds before they run out. We are offering fee-based professional help for business owners who do not know how-to do increase requests themselves, are short on time, and just want the highest and best shot at getting a possible yes. Business owners who need speed should schedule a consultation call asap," said Marty Stewart, Chief Strategy Officer at Disaster Loan Advisors (DLA).
Disaster Loan Advisors specialize in helping business owners with expedited SBA EIDL loan increase requests and last chance EIDL reconsideration appeals. Client companies receive personal attention with rush services for SBA EIDL loans in 2022 with funding amounts between $100,000 to $2,000,000 per legal business entity or location. $2 million EIDL increases are still possible for those that qualify, provided funds are still available.
How To Apply for an EIDL Loan Increase the Easy Way
According to the SBA, the steps to request a loan increase are:
- Confirm your loan eligibility and review the SBA Frequently Asked Questions (FAQs).
- Log onto your Account on the SBA Portal to submit a loan modification request to your existing EIDL loan. The portal is located online by going to: covid19relief1.sba.gov. The portal will only be accessible until May 16th.
- Complete the SBA Portal steps and upload requested documents, including a new version of your IRS Form 4506-T for the COVID EIDL disaster.
- Respond to any SBA requests for signature and documents by May 16th. The failure to sign and submit documents prior to funds being exhausted or rescinded will result in no increase awarded.
What if Your EIDL SBA Portal "Request More Funds" Button is Not Showing?
A consistent problem that has plagued the SBA EIDL loan portal is that some logins are not showing the "Request More Funds" button to do an increased loan modification request through the portal.
Usually, applicants would log into the SBA portal and see a button that says "Request More Funds." When clicking on that button, applicants would then use the slider bar to select a new EIDL increased loan amount, up to their maximum eligibility based on 2019 tax returns, or in some cases 2020 tax returns.
In this case where no button is visible, the only way to do an EIDL loan increase request is manually by email.
EIDL Loan Increase Request by Email: How to Maximize Your Chances
"When asking for an EIDL loan increase request, you really need to be strategic about laying out your case to get an approval from the SBA for a larger amount. This is done in the form of an extensive Increase Request email to the SBA. Sending a simple email won't cut it when you are asking for upwards of $2 million. You need to have wordsmithing and finesse," said Stewart.
For do-it-yourselfers (DIY), business owners can reach out to the SBA by email and request a loan increase.
EIDL steps include:
- Send an email to [email protected]
- Be sure to send the email from the email address the SBA has on file for you, which is the email for your SBA portal login.
- Email subject line should read, "EIDL Increase Request for [insert your 10-digit EIDL application number]".
- In the body of the email, make sure to include all the necessary information, such as application number, phone number, business name, and specific reasons for your increase, including how your business has been economically harmed by the COVID-19 pandemic.
- You should receive a confirmation email for your SBA EIDL loan increase request saying "Thank you for contacting the Covid EIDL Increase Team. Your request has been received and will be processed in the order it was received."
- A strategic tip Disaster Loan Advisors has clients do, is when emailing any correspondence to the SBA, bcc (blind carbon copy) to another email address you have control of, to ensure your email went to it. If so, you know the SBA also received your email.
Alternatively you could also mail printed copies of your increase request directly to the SBA.
Postal Mail to:
U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, TX 76155
However, due to the new deadline of May 6th for submitting SBA EIDL loan increases, sending an email is your best option.
What are the Required EIDL Loan Increase Documents for Increases on Loans Under $500,000 and up to $2,000,000?
If not careful, small business owners face having their request declined for a loan increase, if all documents are not in order, clearly legible, and correctly filled out.
Some important document requirements, may include:
- Front and Back of DMV Driver's License (in full color), USA Passport, or Government ID.
- 2019 Tax Returns.
- 2020 Tax Returns (in some cases).
- SBA Form 2202 Schedule of Liabilities.
- IRS Form 4506-T Request for Transcript of Tax Return, however not from the IRS website, from the SBA website. The correct SBA Form 4506-T will have the word "Disaster" at the top. This is the correct form the SBA wants applicants to use.
- ODA Form P-022 Standard Resolution.
- SBA Form 413 Personal Financial Statement.
EIDL Loan Increase Request Mistakes: Maximize Your Chances of Approval and Avoid These Simple Errors That Can Kill Your Loan Modification
"One of the biggest SBA EIDL mistakes we see small business owners make is getting too greedy by going for the maximum eligibility loan amount showing in their portal. It is far easier to get approved for under $500k, than it is for over $500k. For those that qualify for up to $2 million, does not mean you will be approved for it. There are many factors to strategically consider before going for the maximum," said Stewart.
Another big mistake business owners make is filling out the 4506-T tax transcript form incorrectly. This triggers the common "Unverifiable Information" denial reason. You must match the information exactly from your 2019 tax returns that were filed with the Internal Revenue Service (IRS). Exact business name and address that were on those returns, even if your CPA, accountant, bookkeeper, or tax preparer made type mistakes on the 2019 returns. If your business started late 2019 or January 2020, then your 2020 tax return information must match exactly when filling out the 4506-t.
SBA EIDL Loan Increase Request Processing Times: Setting Expectations After You Apply for Loan Modification
In the past, the estimated timeline for approval was three to five weeks for loan request amounts under $500,000, and six to eight weeks for loan amounts over $500,000.
With the deadline looming this week for SBA EIDL loan increase requests and loan modification submissions, approval decisions may come in a matter of days, with loan funds following less than a week after.
Steps to Increasing Your EIDL Loan up to $2,000,000
"For those small businesses and companies who have initially received 1st round EIDL funds, many do not realize you can get a 2nd round or 3rd round EIDL loan increase for upwards of the current $2 million maximum. Doing EIDL increase requests for over $500k are advised to have expert assistance with the process," said Stewart.
Maximum loan amounts have changed numerous times since the inception of the popular SBA COVID EIDL loan program that started in March 2020. From the original $2 million, it was quickly reduced to $150,000 when millions of business owners were applying in droves. This past year it was raised to $500,000. As of September 2021, it is restored back to the original $2 million maximum for those small businesses that qualify for this size EIDL loan based on the SBA formula.
EIDL Increase Request Approvals: How Can You Spend Your New EIDL Funds?
EIDL funds can be used to cover a wide array of working capital and normal operating
expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments.
In September 2021, favorable changes in the EIDL program included expansion of eligible use of funds. COVID EIDL funds can be eligible and used to prepay expenses such as commercial debt and existing loans, and even to make payments on federal business debt.
Key changes by the SBA include:
- Increasing the COVID EIDL Cap. The SBA will lift the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.
- Implementation of a Deferred Payment Period. The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.
- Establishment of a 30-Day Exclusivity Window. To ensure Main Street businesses have additional time to access these funds, the SBA will implement a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. Approval and disbursement of loans over $500,000 will begin after the 30-day period.
- Expansion of Eligible Use of Funds. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.
- Simplification of affiliation requirements. To ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund.
Urgent Step for Small Business Owners to Receive an Increase on Their Existing COVID-19 EIDL Loan from the SBA
"The SBA issues a last chance for companies to receive COVID related EIDL funds. By doing an increase request filing, or a recon appeal to overcome being denied previously. In both cases, urgency is needed. Small business owners should seek professional help quickly to file correct documents before the May 6th SBA deadline," said Stewart.
About Disaster Loan Advisors™
Disaster Loan Advisors™ is a trusted team of SBA EIDL loan consulting professionals dedicated to saving small businesses and companies from lost sales, lost customers, lost revenue to assist in rescuing your business from potential financial ruin from the COVID-19 / Coronavirus disaster, Delta and Omicron variants, and other declared natural disasters.
DLA specializes in assisting ownership groups with multiple business entities, multiple location restaurants and retail groups, and other complex situations that require an expert to be brought in to assess the situation and create the most strategic path forward.
DLA further specializes in another key pandemic-era SBA / IRS program where business owners are leaving a lot of relief fund money on the table. It is the often misunderstood and confusing Employee Retention Tax Credit (ERTC) program. Business owners can retroactively receive up to $33,000 back for each W-2 employee they had on payroll for the 2020 and 2021 tax filing years. Done correctly, these tax credits or cash refunds can be claimed retroactively for up to 3 years. 4/15/24 is the deadline for the 2020 tax year and 4/15/25 is the deadline for the 2021 tax year. It's encouraged that companies obtain professional assistance in going through the complex 941-X amended filing process to help your company maximize the full value of the ERTC program.
Has Your Small Business or Company Suffered Financial Loss due to COVID-19, Hurricane Ida, or Other Natural Disaster? Was Your SBA Loan Application Denied for an EIDL Loan? Are You Looking for an Increase to Your Existing SBA EIDL Loan (up to $2 Million)? Need Strategic Guidance Before You Make Your Next Move with the SBA?
CONTACT:
Disaster Loan Advisors
Elena Goldstein
Director of Media Relations
877-463-9777 ext. 3
[email protected]
Connect with Disaster Loan Advisors via social media:
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For a strategic exploratory conversation, schedule a free consultation call by visiting:
https://www.disasterloanadvisors.com/contact
SOURCE: Disaster Loan Advisors