SAN FRANCISCO, CA / ACCESSWIRE / January 4, 2022 / The U.S. Small Business Administration's (SBA) Economic Injury Disaster Loan (EIDL) loan program continues in 2022 for small businesses who meet certain criteria. For those small businesses wanting to do a loan modification increase request up to the current $2 million maximum, or companies that have received a decline letter in the past six months or less, still have two strategic moves they can make to access SBA EDIL funds in 2022.
Some small business owners and companies are excited to learn they can still access SBA EIDL disaster loan funds in 2022. Image Credit: 123rf / Blue Sky Image.
"There are two main strategic ways companies can still tap into the remaining SBA EIDL COVID disaster loan funds in 2022," said Marty Stewart, Chief Strategy Officer for Disaster Loan Advisors (DLA).
The DLA Strategic Advisory Team are SBA loan consultants that specialize in assisting business owners with multiple company entities, to help navigate the SBA EIDL loan program for maximum EIDL qualification. Companies that received prior SBA EIDL loans that need an increase or loan modification (up to $2M maximum), as well as EIDL loan reconsideration requests for those businesses that have been denied.
SBA EIDL $2 Million Loan Increase Requests: Path to Approval
"The number one way is to do a loan modification or increase request. This typically needs to be done manually and in letter form. Sending a few paragraph email is not going to cut it. If you want to maximize your chances of success, and for the most money, you need to do this very strategically and with expert help," continued Stewart.
Maximum loan amounts have changed numerous times since the inception of the popular SBA COVID EIDL loan program in March of 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. Now, 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.
A favorable change in the program included expansion of eligible use of funds. COVID EIDL funds can now be eligible and used to prepay commercial debt and existing loans, and even to make payments on federal business debt.
SBA Disaster Loan EIDL Options to Overcome Being Denied
"The number two way is to do a reconsideration request within six months of receiving a decline letter from the SBA. Or, if you have been turned down again after filing for reconsideration, you have one last 30 day window to file an appeal. Again, sending a brief email is not going to be persuasive enough. For the best chance of success in winning an appeal and getting a yes, you need strategic expert help for best results," said Stewart.
According to the SBA, loan applicants can request reconsideration. An applicant has up to 6 months after the date the SBA application was declined to request reconsideration.
Restaurant and Retail Groups Strategic Move to Tap More SBA EIDL Loan Funds
The Small Business Administration (SBA) closed the Restaurant Revitalization Fund (RRF) program almost as fast as they opened it. Due to high demand, restaurant locations submitted 278,304 RRF applications totaling $72,233,280,031. Only a small percentage of those restaurant applicants were awarded funds. In all, 101,004 restaurants received a combined $28,574,979,472 in EIDL funds.
This left many other restaurant owners, restaurateurs, and principals scrambling for what to do next, especially restaurant groups and chains with multiple locations under ownership.
SBA EIDL Deadline 12/31: What it Means for Businesses in 2022
The SBA deadline to submit a new economic injury disaster loan application has already passed as of December 31, 2021. Surprisingly enough, there were small businesses who never applied for the EIDL disaster loan program.
For the millions of small business owners who did apply for EIDLs previously, there are several important, yet often unknown, options available to them that surpass the end-of-year (EOY) 2021 deadline.
About Disaster Loan Advisors™
Disaster Loan Advisors™ is a trusted team of professionals dedicated to saving small businesses and companies from lost sales, lost customers, lost revenue and rescuing your business from potential financial ruin from this COVID-19 / Coronavirus disaster, and the recent Hurricane Ida 2021 declared disaster.
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.
Has Your Small Business or Company Suffered Financial Loss due to COVID, 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?
Disaster Loan Advisors
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SOURCE: Disaster Loan Advisors