9, 2021, the Small Business Administration (SBA) unveiled a new expansion of the COVID-19 Emergency Injury Disaster Loan (EIDL) program which includes increasing the loan limit and improving the range of uses, all while retaining the same low federal interest rate. Once the documents are prepared, they can be submitted by putting INCREASE EIDL Loan Number # in the Subject Line of the email to: You will receive a confirmation email once the SBA has received your request.On Sept.
#EIDL LOAN INCREASE PDF#
The difference between what the (forecasted) actual revenues “due to COVID” as compared to historic revenues, less actual expenses is the "Amount of Economic Injury" that the SBA will consider for an increase.Īll documents will need to be attached to an email individually in a PDF format, clearly named by including the form number when applicable. Form 1368 also documents actual and forecasted expenses. All revenues to date are actual and you will be required to forecast revenues for future periods. Form 1368 records historic revenues prior to the injury period and through the injury period. The SBA has defined the Injury Period due to COVID-19 as being 24 months, approximately March 2020 through March 2022. SBA Form 1368 providing monthly sales figures will generally be required when requesting an increase.Īn SBA spokesperson noted that the agency will use tax returns and other financial records to determine if six months of economic injury is greater than the original loan amount for this additional draw.įorm 1368 will become the basis of your request for increase.SBA Form 2202: Schedule of Liabilities listing all fixed debts, completed, signed, and dated by the applicant.SBA Form PFS 413 completed, signed, and dated by the applicant, each principal owning 20% or more of the applicant business, and each general partner or managing member.Image of a voided check for the entity.Latest filed Tax Return for the entity.IRS 4506T for the entity which must be signed by an officer, owner or partner that is deemed to have authority by the IRS (i.e., President, Managing Partner, Owner, etc.).
Government ID, front and back for each owner and/or Managing Partner.Ownership breakdown, entity structure chart including, EIN, percent of ownership, and Managing Partners, equaling 100% ownership of the entity.Information and Documents to be Included: The SBA has not issued guidance yet on how an entity should go about making the request, BUT the SBA does offer forms that may be helpful. To be eligible for an increase, your business needs to have used, or be close to using up, its paycheck protection and EIDL funds and must be able to demonstrate economic injury.Ī request for increase must contain significant new information that was not required in the original application. Acceptable purposes include working capital, paying fixed debts, payroll, accounts payable, and paying other bills that could have been paid had the disaster not occurred. The business receiving the loan must be deemed a Small Business based on North American Industrial Classification System (NAICS) code, annual receipts, and the average number of people employed per pay period (SBA’s size standards).ĮIDL proceeds must be used for certain purposes. To be eligible, your business must be experiencing a “business loss” related to COVID-19. Beginning April 6, small businesses and non-profits can apply for an increase to their COVID-19 disaster loans up to a maximum loan amount of $500,000. Now is a good time for business owners to start preparing a “Request for Increase” application to the SBA.Īpplicants that already accepted a loan calculated under the previous guidelines have up to two years after the date of issuance to ask for additional funding, according to the SBA.
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