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Writing an EIDL Reconsideration Letter

Writing an EIDL Reconsideration Letter
Susan Guillory

Susan Guillory

Updated October 18, 2021
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
If you’ve been denied a COVID-19 Economic Injury Disaster Loan (EIDL), you do have the option to ask the Small Business Association (SBA) to reconsider your application, along with additional supporting documents.That’s why you might want to write an SBA reconsideration letter for an EIDL loan. For example, you might not have included important information in your application that would have proven your qualifications. Asking for a reconsideration could be your opportunity to provide additional details to support your case for getting the funds you need.Remember: the EIDL loan program doesn’t include only the basic loan of up to $2 million for your business, it also includes various EIDL advances that don’t have to be paid back, so it’s worth your time to write a reconsideration letter if you think you qualify.In this article, we’ll include several EIDL reconsideration letter samples to help you draft your own.

How Does the Reconsideration Process Work?

If you applied for an EIDL loan, believe you should have qualified for it, and have documents to support your case, you can submit an EIDL reconsideration letter to the SBA.

Common Reasons for Applications Being Declined

There are a few reasons that your application might have been declined. These include:
  • You have an unsatisfactory credit history or low credit score.
  • Some information was not available.
  • Your business doesn’t meet SBA size standards.
  • The business owner(s) are not U.S. citizens, non-citizen nationals, or qualified aliens.
  • The type of business is Ineligible.
  • The business didn’t sustain economic injury.
  • You failed to respond.

First, Confirm You Meet Program Eligibility

Review the qualifications for the EIDL loan to ensure that you qualify. Your business must meet the SBA’s size standards and have 500 or fewer employees. There is also a credit score requirement of 570 or above, and your business must have been in operation on or before January 31, 2020 to be eligible.

Submit Your EIDL Reconsideration Letter

The SBA will provide you with the reason your application was declined. If you can refute this, you should outline why you want your application to be reconsidered in your letter. You’ll also want to include any supporting documents that can strengthen your case like tax returns or revenue reports.

Get the Support of an SBA Representative

To further strengthen your reconsideration appeal, you can reach out to your local Small Business Association field office to get the support of an SBA representative. This rep can help you determine whether your application can be improved, based on the reason the SBA provided for your application being declined.Next, let’s look at samples of SBA reconsideration letters to help you understand what your letter needs in order to be effective at getting your application looked at again.

EIDL Reconsideration Letter Examples

Let’s review a few EIDL reconsideration letter samples. Each one addresses a different reason that the application was declined. Of course, you’ll need to tailor your letter to your specific decline reason and provide the relevant supporting documents.

EIDL Reconsideration Letter Sample for Economic Injury Not Substantiated

To Whom It May Concern:I received notice that my EIDL loan application [#] had been declined because you did not have evidence that my business, [business name], had sustained economic injury because of the COVID-19 pandemic.I am including my profit and loss statements for 2019 and 2020, which show a clear decline in revenues. I request that you reconsider my application with the enclosed supporting documents.Thank you,[Name, title, business name, email, phone number]

EIDL Reconsideration Letter Sample for Not Meeting Size Standards

To Whom It May Concern:I received notice that my EIDL loan application [#] had been declined because you believed my business, [business name] did not meet the SBA’s size standards.I am including my complete payroll list, which shows that my business has 480 employees, and therefore falls beneath the SBA’s requirement of 500 or fewer employees. I request that you reconsider my application with the enclosed supporting documents.Thank you,[Name, title, business name, email, phone number]

EIDL Reconsideration Letter Sample for Failure to Respond

To Whom It May Concern:I received notice that my EIDL loan application [#] had been declined because I did not respond in time to your request for more documentation. I was out of state for several weeks and did not receive your request in time to respond.I am including the requested copy of my photo ID and incorporation paperwork. Please reconsider my application with the enclosed supporting documents.Thank you,[Name, title, business name, email, phone number]

How Long Is the Reconsideration Process?

There’s no definitive answer for how long it will take the SBA to review your reconsideration letter. Many factors, including how many applications and reconsideration requests the SBA is currently processing, as well as whether you provided detailed documents to support your request, will determine how long it takes to hear back about your request.

Can You Apply More Than Once for an EIDL Loan?

If you received EIDL funds earlier in the pandemic but find that your business is still struggling, you may be eligible to borrow more, up to that $2 million limit.To apply for more funds, use the SBA EIDL portal. The amount you will receive will be the amount you’re eligible for today, minus the amount you’ve already received. If you are eligible for $300,000 today, but already received $200,000 last year, you could receive an additional $100,000.The rules about what you can and can’t use your EIDL loan for apply on this second round of funding, too, and there is still no prepayment penalty

The Takeaway

Putting time and effort into carefully crafting your EIDL reconsideration letter could mean the difference between your being declined for the loan and your getting the money your business needs to make it through the coming months.If you’re looking for other financing options, consider online loans for small businesses through Lantern by SoFi. With a few clicks of your mouse, you can get multiple offers from different lenders.
Photo credit: iStock/izusek
The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.SOLC0921183

Frequently Asked Questions

If I am denied an EIDL loan, can I get a second chance?
Why did my EIDL loan get denied?
How do I get the SBA to reconsider my EIDL application?

About the Author

Susan Guillory

Susan Guillory

Susan Guillory is the president of Egg Marketing, a content marketing firm based in San Diego. She’s written several business books, and has been published on sites including Forbes, AllBusiness, and Cision. She enjoys writing about business and personal credit, financial strategies, loans, and credit cards. Follow her on Twitter @eggmarketing.
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