HOW TO GET THE SBA TO RECONSIDER YOUR LOAN

In the beginning of the pandemic, our client applied for the Small Business Administration’s Covid-19 Economic Injury Disaster Loan (EIDL). The loan provides economic relief to small businesses and nonprofit organizations experiencing a temporary loss of revenue due to the pandemic.

At the time, the loan only required a simple online application. The U.S. Treasury wanted the money to be quickly distributed to businesses that needed it, so loans were being applied for and money given out with little oversight.

The application process was simple but did not gather enough details to get the financial help our client needed. The initial loan amount was $24,000 for one restaurant and $6,000 for each of the other two locations. To say the least, our client was frustrated. A program designed to assist businesses affected by the pandemic only awarded a loan amount that would not cover a single month’s expenses.

At this point, the client felt helpless. They knew the loans granted by the SBA would not be enough to get their business through the pandemic, so they turned to Spiegel & Utrera, P.A. to get someone to fight for them.

Under our representation, our client was able to stop taking time away from his business while we focused our time on getting them more money.

We quickly noticed that our application was not being handled diligently. The case was being assigned to several officers who were unable to coordinate their information with each other, further prolonging and complicating an already difficult process. To rectify the issue, our firm filed a complaint with the SBA Public Affairs Office, and we were eventually able to work with a single loan officer. We also made sure to submit more information for our client, such as their tax returns and transcripts, as well as their profits, losses, and balance sheets, which were critical to ensuring we could get them the best loan possible.

Initially, we sought the allowed loan limit of $150,000. However, during the reconsideration process, the SBA increased the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000. We promptly submitted changes to our reconsideration and requested a new loan amount of $500,000.

Working with the SBA, Spiegel & Utrera, P.A. managed to increase the first loan from $24,000 to $324,000, and one $6,000 loan is soon to possibly receive the same amount. The second $6,000 loan is currently pending reconsideration, and we are confident we will get similar results!

To be in a position to receive a sizable business loan, we strongly advise all our clients to keep detailed and accurate business records. Keep complete records of your expenses and revenue, pay your quarterly or yearly taxes, and hire an accountant or install an accounting software such as QuickBooks. Most importantly, be sure to file your taxes. If you do not file your taxes, you will not have a tax transcript from the IRS and therefore will not be able to receive a loan.

Additionally, be sure to maintain an active entity status by filing your required annual reports, and prepare the notice and minutes for your company meetings. The minutes can show proof that the entity has authorized an officer to apply for the business loan and get the process started quickly.

Most importantly, if you need a loan or need a loan reconsidered for a higher amount, contact us at ClubAssist@AmeriLawyer.com or give us a call at (800) 603-3900 ext. 219 and ask to speak with Larry Spiegel.