California SBA EIDL Loan Increase Timeline and Process for 2022

A recent California SBA policy change increases the maximum loan available to small businesses to $2,000,000. Economic Injury Disaster Loans (EIDL) had previously been capped at $150,000, then $500,000.

If you have already received a California EIDL loan from the Small Business Administration (SBA), you may be eligible for more money. You can follow the increase request and loan modification process to request a SBA EIDL loan increase in California.

California SBA EIDL Loan Increase Timeline

For new California EIDL applications, the deadline expired on December 31, 2021. However, if you already received EIDL funds for your California business, you can still do an increase request in 2022, or until the COVID EIDL funds run out. 

If your California business had been declined, you can still go through the reconsideration process within 6 months after the date of the decline letter to request reconsideration, even if it is already past the deadline of 12/31/2021. The ERC in California is a tax credit program for your CA business that does not expire until 2025.

The SBA will continue processing applications after the deadline, including increase requests and reconsiderations. This means six months from the date of decline for reconsiderations and 30 days from the date of reconsideration decline for appeals – unless funding is no longer available.

“There are many small business owners confused about the December 31st deadline. The only businesses that needed to worry about that deadline were the ones who had never applied for the SBA EIDL COVID loan program before,” said Marty Stewart, Chief Strategy Officer for Disaster Loan Advisors (DLA).

“Many companies that are in the process of loan modification increase requests, or reconsideration appeal requests within six months of receiving a decline letter from the SBA, will continue well into 2022 until the EIDL funding eventually runs out,” continued Stewart.

Check out this article about SBA EIDL Deadline 12/31: What it Means for Businesses in 2022

How to Request an Increase in the SBA EIDL Loan in California?

If the small business has already obtained a loan via COVID EIDL before and does not already have an outstanding loan increase application in process, complete the following steps to apply for a loan increase:

  1. Confirm Eligibility.
  2. Log onto Account on SBA Portal (do not apply for another loan) to submit loan modification.
  3. Complete portal steps and submits relevant documents.
  4. Respond to SBA requests for signature, confirmation, and documents.

The average SBA decision timeline for $500,000 or under loans is several weeks.

Here are more detailed steps for you to request an increase in the SBA EIDL loan in California:

Once you log in to SBA’s online EIDL portal, you may or may not see a button that says “Request an Increase” or “Request More Funds”. This button is not always visible due to glitches within the SBA portal system, and thus, many requests need to be done manually in writing for best results.

California SBA EIDL Loan Increase Request Guidelines

Here are some terms when you apply for an California SBA EIDL loan increase:

  • 30-year term with a 3.75% fixed rate for business and 2.75% for nonprofits
  • SBA will record a UCC filing for loan amount over $25,000
  • No real estate collateral is required for any loans below $500,000
  • You can’t invest the money in an interest-bearing bank account

How Long Does it Take to Get an SBA Loan Increase in California?

The estimated timeline for approval is three to five weeks for amounts under $500,000 and six to eight weeks for amounts over $500,000.

If you are waiting on approval for a loan under $500,000 and an increase to over $500,000, the timeline is closer to nine weeks.

Check out this article on SBA EIDL $2 Million Loan Increase Requests

Loan Reconsideration Request Process for SBA EIDL Disaster Loans in California

“Whether doing an SBA Loan Reconsideration Request or an SBA Increase Request, there is a right way to word these documents, that requires professional finesse. This will substantially increase your odds of getting to a yes and getting approved after a denial, or getting approved for an increased request. Many business owners or company executives are not great writers, and that is why they are coming to us for disaster loan assistance,” continued Stewart.

California SBA guidelines say that loan applicants can apply for reconsideration after the deadline has passed. Even if the deadline for submitting SBA applications has already passed, applicants may request reconsideration up to 6 months after their application was denied.

California SBA EIDL Loan Increase Timeline and Process Conclusion and Summary

Follow the steps above to get the SBA EIDL loan increase process done. The process to apply for an SBA EIDL loan increase is quite simple and takes a little time based on your application and loan increase amount.

Does Your California Business Need an Increase or Loan Modification to Your Existing SBA EIDL Loan?

Did you already receive a California SBA EIDL loan for your California business?

We can assist your business in requesting additional SBA EIDL loan funds through the increase request and loan modification process in California.

Schedule Your Free Disaster Loan Consultation to see if we may be able to help your business with the SBA Increase Request Process in California.

Was Your California SBA EIDL Loan Denied?

Has your California SBA EIDL loan been denied for your CA business?

We can assist you in filing for an SBA EIDL loan reconsideration appeal for your business in California.

Schedule Your Free Disaster Loan Consultation to see if we may be able to help your business with the SBA Loan Reconsideration Process in California.

Cover Image Credit: 123RF.com / Undrey. / Disaster Loan Advisors.

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