I assume you’re having issues with the Covid-19 EIDL program. If so, then let me explain to you how a tax CPA firm can help you.
You may have heard the COVID-19 EIDL program ends on 12/31/21 which means if your loan or target advance is not approved by this date you are out of luck.
Fortunately, there are a few steps you can take the limited amount of time left to increase your chances of approval.
The COVID-19 EIDL loan short for Economic Injury Disaster Loan that was introduced and passed with the CARES ACT during the COVID-19 pandemic for businesses to pay operating expenses and stay afloat during the pandemic that has devastated businesses.
Along with the loan congress later introduced the targeted and supplemental advance, which is basically a grant you don’t have to pay back. The targeted advance is $10,000 and the supplemental advance is $5,000.
There are many people out there that did not get their loans approved or targeted advances approved.
This article is for those of you. I will outline some steps you can take to still get it approved within this short amount of time that Is left.
What you do is file what’s called a reconsideration. However, the reconsideration process can be daunting and lengthy.
One of the key components of the reconsideration is the SBA successful obtaining your transcript from the IRS. This is the process that holds up the reconsideration and can take anywhere between 8-16 weeks due to the backlog of work the IRS has since the start of the pandemic.
I am going to drop the biggest secret right now in getting your EIDL’s reconsideration closer to approval. And that is you can directly obtain your record of account transcript for the year 2019 from the IRS and send it to the SBA with your reconsideration.
Now don’t just send this tax document to the SBA, you need to read your decline letter and specifically answer to the SBA why you disagree with their decision. Some of the common reasons SBA declines you are for “Unverifiable Information” or “Unsatisfactory Credit History”.
So when you send in your reconsideration you need to send supporting documents for example to show that your business is legitimate or that your credit is improving.
Proper documentation to support why you don’t agree with SBA’s decision and the IRS record of account transcript will surely give your reconsideration a chance of getting a decision within 2-4 weeks.
If you need any help, please reach out to our office by Scheduling an appointment sooner rather than later.