If the SBA denies your EIDL loan application, the SBA will notify you in writing outlining the specific reasons for the denial. Any applicant whose request for a loan is declined for reasons other than size (not being a small business) has the right to submit information to overcome the reason or reasons for the decline and to request SBA reconsideration of the application.
To achieve a favorable outcome, a request for reconsideration must contain significant new information that was not presented in the original application to overcome the denial.
A few of the reasons for an SBA denial include:
- Business activity is not eligible
- Unsatisfactory credit history
- Unverifiable Identity
- Multiple Applications were filed for the same entity
No matter what the reason for the SBA’s denial all “Requests for Reconsideration” follow basically the same format and the SBA provides forms that make the process a little easier.
Documents to be Included for a Successful Reconsideration Decision
- A written request for RECONSIDERATION to the SBA that includes the SBA Application Number, Entity Name, and a brief explanation of why the request is being made.
- Supporting Documents that should be included with every Reconsideration
- SBA Form 3501 and 3502 (EIDL Application)
- IRS Form 4506T for the entity (Request for Transcript)
- SBA Form 2202 for the entity (Schedule of Liabilities)
- 2018 or 2019 Tax Return for the entity (Complete with all schedules)
- Copy of Driver’s License or US Passport (owner/applicant)
- Copy of a Voided Check for the entity
Depending on the SBA’s reason for denial you may need to include additional documents that support your reasoning for a reversal. Such as:
- Financial Statements for the entity
- Copies of Recent Credit Report (showing improvement)
- Entity Structure Documents
- Anything that will support a decision to Approve
All documents need to be attached to an email individually in a PDF format, clearly named by including the form number when applicable. Once the documents are prepared, they can be submitted by putting the Application Number in the Subject Line of the email to: PDC.Reconsideration@sba.gov. You will receive a confirmation email once the SBA has received your request.
Good Luck!
Carl Falletta
Partner, Florida CFO Group