In Michigan, there are various reasons that your EIDL loan application may have been declined. One of the most common reasons is due to “Unverifiable Information” which is usually caused by an incorrectly filled out IRS Form 4506-T.
Michigan business owners remain frustrated when getting declined for simple errors in the SBA EIDL loan process.
Was your Michigan SBA EIDL loan declined due to unverifiable information?
Here is what “Unverifiable Information” commonly is, and what you can do about it for your small business in Michigan.
EIDL Unverifiable Information for Your Michigan SBA Loan
The SBA may have denied your application simply because it was unable to verify some of your information. In this case, it may be easy for you to provide the information requested.
Common Reasons for Unverifiable Information
Unverified EIDL applications are denied due to identity proofing that could not be validated. This may include, but is not limited to:
- IRS Form 4506-T is filled out incorrectly
- IRS does not have the 2019 tax returns in their system due to extreme IRS backlog
- Owner information failed validation (info does not go together, person is listed as deceased, etc.)
- Bank account number/routing incorrect
- Bank account ownership not matching business
- Digital identity fraud suspicion/suspicious online behavior – the data altogether has been used fraudulently online.
To avoid giving money to fake and fraudulent companies, SBA wants to verify that the applicant is a real person and a legitimate business.
The major reason for getting this error for many people was not filling out the IRS Form 4506-T correctly, and the IRS not having the 2019 tax returns in their system for that Michigan business.
How Do You Start the EIDL Reconsideration Process in Michigan?
If your project has been denied for an Economic Injury Disaster Loan (EIDL), you will need to provide information about your financial hardship to be reconsidered.
An applicant has up to 6 months after the date the application was declined to request reconsideration, even if the application deadline of Dec. 31, 2021 has passed. After you have been denied a loan through the EIDL, you have six months to file a reconsideration.
Send reconsideration requests to:
U.S. Small Business Administration
Disaster Assistance Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, Texas 76155
Include your application number, any information required to overcome the reason for decline, and any additional information that may assist us in processing your request.
The process and required documents may vary depending on the reason for the decline. If the decline letter requested specific information or documentation for reconsideration, you must include those items.
Be sure to include:
- Business Name
- Borrower’s Name
- Tax ID/EIN or SSN
- Application / Loan Number
- IRS Form 4506-T (form must be received within 120 days of the signature date)
Michigan Small Business Owners, How to Write a Reconsideration Email for an EIDL SBA Loan
If you’re applying for SBA loan reconsideration, you’ll need to know how to write a letter of reconsideration and ask the SBA to re-review your case.
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 Michigan business owners or Michigan company executives are not great writers, and that is why they need a SBA Loan Consultant for disaster loan assistance.
Steps to Take for Your Small Business in Michigan
The first step is making sure that you have proof of financial hardship and, if applicable, information about why your business was not in operation on or before January 31, 2020.
If so, then contact a Loan Specialist at your local SBA office and create a list of questions that you would like to be answered, such as:
- What kind of documentation should I provide?
- How long does it typically take for EIDL reconsideration?
- Does it matter how many Michigan W-2 employees my company has?
- How long will it take once my application is forwarded to the U.S. Department of Treasury?
- When can I inquire about the status of my case?
- What if I don’t receive a response from the SBA in time?
The next step is to write your letter of reconsideration and make sure that it includes all necessary information. If you have been denied an EIDL loan, then your letter should include:
- Date when a natural disaster or business damaged your project has been closed because of a natural disaster
- Your contact information, including name, address, phone number, and email address
- Reference numbers or names of your Economic Injury Disaster Loan application
- When you applied for an SBA loan at the local office where you submitted your application
- Why you were turned down for an EIDL loan, it wasn’t because of a lack of repayment ability
- Any changes you’ve made since your loan was turned down, such as selling your property, itemizing expenses to get better cash flow, etc.
Once the SBA reviews your letter and all requested information, they will determine whether or not you meet eligibility requirements for an EIDL reconsideration. They may require further documentation and changes to your case. If this happens, they will let you know which additional documents and/or changes need to be submitted before approving or denying Economic Injury Disaster Loan (EIDL) reconsideration.
You should also check out SBA Disaster Loan EIDL Options to Overcome Being Denied
How Long Does Michigan EIDL Reconsideration Take for a SBA Loan in Michigan?
Once you have gathered your proof of financial hardship, the next step is to contact a Loan Specialist at the SBA office.
The SBA will look over all of your information. Suppose they find it satisfactory enough to meet certain eligibility criteria for reconsideration. In that case, they will send your case on to the U.S. Department of Treasury for final approval before disbursing any funds.
For most EIDL reconsideration, most cases take 30-45 days. Still, they can take up to 60 days depending on federal guidelines and if changes need to be made after reviewing more information about the case.
As a result of the increasing number of requests, you shouldn’t expect a quick response. However, if your status shows as “Pending,” then you should still submit supporting documentation for reconsideration because your status might change even if the SBA loan application has been denied.
Conclusion and Summary for EIDL Unverifiable Information in Michigan
You can provide the required documents with a reconsideration request to get your loan approval for EIDL loan. Make sure you fill out the form correctly and provide all the necessary documents.
Denied for Unverifiable Information?
Does Your Michigan Business Need an Increase or Loan Modification to Your Existing SBA EIDL Loan?
Did you already receive a Michigan SBA EIDL loan for your Michigan business?
We can assist your business in requesting additional SBA EIDL loan funds through the increase request and loan modification process in Michigan.
Schedule Your Free Disaster Loan Consultation to see if we may be able to help your business with the SBA Increase Request Process in Michigan.
Was Your Michigan SBA EIDL Loan Denied?
Has your Michigan SBA EIDL loan been denied for your MI business?
We can assist you in filing for an SBA EIDL loan reconsideration appeal for your business in Michigan.
Schedule Your Free Disaster Loan Consultation to see if we may be able to help your business with the SBA Loan Reconsideration Process in Michigan.
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