Presented by: Cathay Cooke, public Affair Of SBA
Date: June 24, 2020
Any type of small business, small agricultural corporation, or nonprofit organization can apply to economic injury disaster loans for COVID-19. The Reconsideration guidance is:
- Unsatisfactory credit
If the credit score is below the SBA standards, then their loan will be declined based on unsatisfactory credit.
- Economic injury not substantiated
Based on a historical basis, because they don’t base the ability to pay or work in capital based on what happened after the coronavirus. They wanna base it on what a normal year looks like because no matter what your sales are you probably still have a payment.
- Not eligible due to character reasons.
SBA will investigate the reason for arrest, and progression.
- Applicant requests a change in plans or fails to proceed.
- Not eligible because the applicant is not a small business.
SBA requires tax return, balance sheet, profit and loss, monthly sales, personal financial statement. EIDL is based on their repayment on credit and the criteria for small businesses are the maximum sales and the maximum number of employees. Sales are based on revenue and five hundred or fewer employees are considered as small businesses.
- Not Eligible due to delinquent child support systems
- Business Activity is not eligible
- Unverifiable Information
When an applicant is not a U.S. citizen they can still avail of the loan, they only need proof that they are staying legally.
You can submit any additional information that may assist EIDL in reconsidering the application. If you would like to consider tax information, you can submit a copy of your most recent federal tax return and sign a 4506-T.