SBA Disaster Loan EIDL Options to Overcome Being Denied

·5 min read

SAN FRANCISCO, CA / ACCESSWIRE / November 4, 2021 / The Small Business Administration (SBA) deadline to submit new Economic Injury Disaster Loan (EIDL) applications is fast approaching. Surprisingly, there are still small businesses who have never applied for the EIDL disaster loan program. December 31, 2021 will be the last day for new SBA loan applications to be accepted. For the millions of small business owners who have applied for EIDLs previously, and have been denied, there are several important, yet often unknown, options available to them that surpass the end-of-year (EOY) deadline.

Stressed business owners devastated after being denied an EIDL disaster loan. Image Credit: 123rf / Fizkes.

"For the past several months, we've received hundreds of calls from small business owners and entrepreneurs who fall into one of three categories. First, those who applied for an EIDL, and were denied. Second, those businesses who received an initial EIDL loan, and were turned down for an increase. And third, those who have been approved for a 2nd round EIDL fund increase, yet want to do an increase request upwards of the $2 million maximum," said Marty Stewart, Chief Strategy Officer for Disaster Loan Advisors (DLA).

DLA is a strategic advisory firm that specializes in assisting small businesses and companies with SBA loan consulting for EIDL loan reconsideration requests and SBA EIDL loan increase requests.

Loan Reconsideration Request Process for SBA EIDL Disaster Loans

"Whether doing an SBA Loan Reconsideration Request or an SBA Increase Request, there is a right way to word these documents, that requires professional finesse. This will substantially increase your odds of getting to a yes and getting approved after a denial, or getting approved for an increase request. Many business owners or company executives are not great writers, and that is why they are coming to us for disaster loan assistance," continued Stewart.

According to the SBA, loan applicants can request reconsideration after the deadline has passed. An applicant has up to 6 months after the date the SBA application was declined to request reconsideration, even if the application deadline of December 31, 2021 has already passed.

COVID Economic Injury Disaster Loan (EIDL) Program Enhancements

In September 2021, SBA Administrator Isabella Casillas Guzman announced major enhancements to the COVID Economic Injury Disaster Loan (EIDL) program.

Key changes announced by the SBA included:

  • 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.

Increase Request Process for EIDL SBA Disaster Loans

"When you are asking the SBA for a substantial EIDL loan increase, especially for the current maximum of $2 million, you have to prepare a substantial-sized Increase Request document laying out your case for why you need the increased amount, documents to support your case, and most importantly, how you are able to repay this EIDL loan," said Stewart.

Similarly, SBA loan applicants can request an EIDL increase after the deadline has passed. Increase request applicants also have up to 6 months after the date of the original EIDL funds were received to request an increase, even if the application deadline of December 31, 2021 has already passed.

EIDL Disaster Loans for Hurricane Ida 2021

Hurricane Ida 2021 recently left a trail of damage and destruction in 12 states and 134 counties. Businesses and residents were affected by hurricane damage, flooding, and storm remnants from the Hurricane Ida tropical depression.

This is what the EIDL disaster loan program was originally created for, natural disasters that may occur each year. 134 counties in 12 states were declared disaster areas due to Hurricane Ida. Business owners and residents in those areas who sustained damage to their property, contents of their property, or economic injury to their business due to the hurricane, are eligible to apply for an EIDL loan, even if they already applied for a COVID related EIDL loan.

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.

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
Elena Goldstein
Director of Media Relations
877-463-9777 ext. 3
Connect with Disaster Loan Advisors via social media:
Linkedin, Facebook, Instagram, and Twitter.

For a strategic exploratory conversation, schedule a free consultation call by visiting:

SOURCE: Disaster Loan Advisors

View source version on