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EIDL: Understanding How To Request An Increase In Your Loan Amount

EIDL: Understanding How To Request An Increase In Your Loan Amount

 

The current pandemic has taken a toll on businesses worldwide. Businesses are struggling to find ways to sustain operations.

If you are a business owner, I am sure you would welcome any help to ease the burden. Among the many programs designed to help COVID-19 affected enterprises, EIDL is one of the important ones.

The Economic Injury Disaster Loan (EIDL) was introduced in April 2020. It is a loan program designed to support small businesses and private non-profits by providing low-interest loans to sustain enterprises during the Covid-19 pandemic.

Are you a business owner who has applied for this loan previously?

Here’s some good news for you.

You can now request an increase in your loan amount, and in this article, we will tell you exactly how to do that.

Latest Updates To The EIDL Program:

EIDL was started to fund the working capital and operating expenses of small businesses and private non-profit organizations. It offers a temporary relief to undertakings that incurred a loss of income due to the pandemic.

The previous loan amount to any business was equal to 6 months of working/operating expenses or $150,000, whichever was lower. 

As of April 6, 2021, the EIDL has extended the maximum loan amount to $500,000 or 24 months of working/operating expenses, whichever is lower.

If your loan was approved before April 7, 2021, and the loan amount was less than $500,000, you are eligible for an increase.

How To Apply For An Increase In EIDL Loan

Now let’s see how a business can take advantage of the new provisions.

SBA has sent emails to EIDL loan borrowers from 2020 and early 2021 to inform them of the process to request an increase in the loan amount. The steps to request an increase are:

  1. On receiving an email from SBA, write an email back to CovidEIDLIncreaseRequests@sba.gov with the subject line – “EIDL Increase Request for [insert your 10-digit application number].” 
  2. Within the email, mention that you want to request an increase in your EIDL loan. Also, state information for your current loan like:
  • Application number 
  • Loan number
  • Business name
  • Business address
  • Business owners names
  • Phone number
  1. Don’t attach any financial or tax records, as the SBA will contact you via a follow-up email if any additional information is needed.
  2. The SBA takes a few days to weeks to respond with a link to their portal to request the increase.
  3. Here they ask you for some information about your business situation. Additionally, you have to sign a form and authorize SBA to get your tax transcript.
  4. Next, you have to decide the amount of increase that you want.
  5. Once this is done and submitted, SBA will take a few weeks to process your request for the increase.

Conclusion:

Business owners can now take this opportunity to garner additional funds for their operations from EIDL. We hope you found the above information useful.

If you need help submitting the loan increase request, you can book a consultation with us.

If you would like to watch the video of this article, click on the link below:- EIDL Loan Increase How To Request | EIDL Loan Increase Update | FY 2021-22 | Finaccurate

 

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