As I have previously written about, the SBA is currently issuing EIDL loans up to $2M with no proof of economic injury. This decision completely contradicts the program's intention and hurts businesses that were severely impacted by Covid-19 and continue to struggle with the dominoes of the Pandemic.
A few weeks ago, I met an entrepreneur who bragged to me that he was having his best year in his company's history and just had $2M wired into his account by the SBA. Despite the program restrictions, he has all types of outrageous plans about what he intends to do with the money and is comfortable taking the risk because the audit risks are so low.
In contrast, I know of a Vietnam Vet whose business was decimated by the Pandemic. He and most of his team have not been paid for a year, as they have struggled to survive and keep their 100-year-old company. He applied for the SBA EIDL increase ½ an hour after the program went live and has been stuck in the quicksand of the bureaucracy ever since.
Yesterday, he was declined because his credit score was too low. His credit has dropped dramatically since he applied, as he has struggled to keep his business alive.
The SBA should immediately create a threshold for economic damage and use the remaining available funds for businesses that need the money instead of those who are gaming the system.
Thank you all. I have helped a few companies with their applications. One got (and needed) the 150/500/$2MM loan, in sequence. It got declined and reinstated. We were told that it had been withdrawn (that seems to be a standard procedure). We kept going back and requesting reconsideration. Finally, we were able to communicate with a loan officer and we got things resolved. The loans were approved. The funds were received. In other cases, we are still in limbo and the clients are feeling desperate and like they are pushing on a string. It has been really frustrating. I have been on hold for 2+ hours at times. I know they are busy, but the black box, with no human…
For those still struggling with getting EIDL support, I know the frustration. I have worked with my local University of Houston, North Texas Central College SBDC to support business owners trying to get through the red tape. I value Ami's messages and support during this time. I'll leave some tips to help those that have already shared they are struggling. Please understand, I'm not offering services. I'm just providing quick insight from someone that has walked business owners through difficult cases with positive results:
1) Low credit scores are tough but not impossible to get beyond. SBA requires explanations for why the credit score is low. I recommend pulling a copy of your own credit score (Experian is SBA's preferred…
I too am struggling to keep my business going I applied back in October 2020 and with all the running around yet have seen a reply when my funds will be approved. I constantly call every 2 weeks to see what the status is and they say it is in process but no actual date or if it is pending or what. Some of the agents there get rude sometimes and just tell me to wait and stop calling so much. Yet a business owner I know applied in June and got his money over $250,000. So Maybe I am to small of a business.
I appreciate the sentiment - my business has been stuck in a circle of hell since the SBA made a mistake in processing. We applied August 4th. No resolution in sight.
I initially applied for the EIDL increase and was approved. But after thinking about it I declined the loan. My business has came close to being back to where I was prepandemic and I couldn't see taking on unnecessary debt. Especially when it may affect someone who truly needs the funding.