89,386 Small Business owners and firms in Michigan have received a total of $6,257,658,627 in Michigan SBA Economic Injury Disaster Loans (EIDLs).
According to the Michigan Paycheck Protection Program (PPP) loan data, 176,993 MI small businesses have received a total of $8,418,112,644 worth of SBA loans.
There are many more struggling Michigan companies and small businesses that have been turned down for a Michigan EIDL loan.
Many people do not realize that you can submit an SBA loan reconsideration request if you have already been denied. You have up to 6 months from the date of your denial letter.
For your Michigan business to be reconsidered for an EIDL SBA loan, you will need to meet certain eligibility criteria set forth by the United States Small Business Administration (SBA).
If you have not applied for an EIDL loan yet, you must hurry! The deadline to apply is December 31, 2021 in Michigan.
What Happens When You’re Denied for an EIDL?
If your Michigan business has been denied for an Economic Injury Disaster Loan (EIDL), there is still hope. You will need to provide more detailed information about your financial hardship to be reconsidered.
If you have a traditional SBA loan, the first step is to contact your bank or lender and see if they can renegotiate a Michigan SBA loan repayment plan which might help you avoid defaulting on the loan, getting further behind on payments, filing for bankruptcy, or going through foreclosure.
If this process does not work out, gather as much documentation as possible for proof of financial hardship from the SBA before reapplying. You can start by comparing household income levels against expenses and other monthly debts such as student loans, rent/mortgage, car payments, insurance costs, credit cards, and other outstanding debts.
What Are Some Reasons I May Be Denied For a MI EIDL?
Some other reasons you may be denied for an EIDL loan are low credit scores, lack of cash flow, poor cash reserves, foreclosure proceedings, other delinquent debts, or missed payments.
Suppose your MI EIDL application was denied because of any other reason besides financial hardship or damage to business/property due to a natural disaster. In that case, you will need to provide proof to be reconsidered.
Here are some of the common reasons for denial:
- Wrong address (if moved to the new)
- Low credit score
- The business wasn’t in operation on or before January 31, 2020
- Typing mistakes
- Wrong costs or expenses information
- Your type of business isn’t eligible
- Non-US citizen
- Unverifiable information
How Long Does Reconsideration Take For the Michigan SBA Loan?
Once you have gathered your proof of financial hardship, the next step is to contact a Loan Specialist at the Michigan 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 MI 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.
How To Write a Reconsideration Letter For Michigan SBA Loans?
If you’re applying for SBA loan consideration, you’ll need to know how to write a letter of reconsideration and ask the SBA to re-review your case.
The first step is making sure that you have proof of financial hardship and, if applicable, information that your business was 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 Michigan EIDL reconsideration?
- 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 MI 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 Michigan Economic Injury Disaster Loan (EIDL) reconsideration.
Latest SBA Loan Program Updates in Michigan
As of September 8, 2021, new COVID EIDL policy changes have taken effect that entails the below updates to the program:
- The maximum loan cap increased from $500,000 to $2 million.
- Use of funds was expanded to include payment and pre-payment of business non-federal debt incurred at any time (past or future) and payment of federal debt.
- Extend the deferment period to 24 months from origination for all loans (existing loans with a less than 24-month deferment will be adjusted).
- Affiliation requirements simplified to an affiliate is a business that you control or in which you have 50% or more ownership.
- Developed additional path to meet program size standards for businesses assigned a NAICS code beginning with 61, 71, 72, 213, 3121, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812.
- Exclusivity Period: From September 8, 2021, to October 8, 2021, the above policy changes will be applicable to applications for <$500K while applications for >$500K will not be approved and therefore receive the policy changes until October 8, 2021.
See more details on the COVID-19 September 8, 2021, Policy Changes.
Michigan Local SBA Assistance
In Michigan, there are two offices:
Grand Rapids, MI
Main SBA Assistance Office:
Michigan District Office
477 Michigan Avenue Suite 1819, McNamara Building
Michigan SBA Telephone and Email Contact Information:
Michigan District Office
The goal of the Michigan District Office is to create an environment within Michigan where small business can grow and prosper. We do this by providing:
• Free business counseling through the Michigan Small Business Development Centers, SCORE, Women Business Centers, and U.S. Export Assistance Centers.
• Government contracting assistance
• Low-cost training
• Loan guaranty programs (SBA does not provide grants to individuals to start businesses).
Grand Rapids, Michigan SBA Office
Ford Federal Bldg.,Rm307 110 Michigan St. NW
Grand Rapids, MI
Michigan SBA Frequently Asked Questions (FAQs)
I applied for a Michigan COVID-19 EIDL loan and I haven’t heard anything about my application. Should I reapply?
No. Any additional applications will be marked “duplicate” and will not be processed. Please call our Customer Service Center or email the SBA to check the status of your application. If you have already applied, you do not need to submit your information again.
I need help completing the EIDL application. Can the SBA help me?
Yes. You can contact the SBA’s Customer Service Center. Also, an SBA Resource Partner such as a local Michigan Small Business Development Center (SBDC) or Michigan Women’s Business Development Center (WBC) can assist you with completing and submitting the COVID EIDL application at no cost. Find the Michigan SBA Resource Partner nearest you.
For speed and personalized attention, Schedule Your Free Michigan Disaster Loan Consultation call. Depending on your situation, for a small fee, we may be able to help.
Can I request reconsideration after the deadline?
Yes. A Michigan 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.
Send Michigan EIDL loan reconsideration requests to:
By Postal Mail:
U.S. Small Business Administration
Disaster Assistance Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, Texas 76155
Be sure to include your application number, any information required to overcome the reason for the 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)
Can I apply for a Michigan COVID-19 EIDL if I already received a Michigan PPP loan?
Yes. Borrowers can apply for both the PPP and EIDL, although funds from both cannot be used for the same purpose.
How can I check the status of my Michigan SBA loan application?
Applicants will receive an invitation to log in to the customer portal to review the application, select an eligible loan amount, and submit it for final review. If the loan is not approved, the applicant will receive an email notification with a detailed reason for the loan decline, including instructions on how to appeal the decision.
Contact customer service to check on the status.
I have multiple Michigan businesses. Can I submit multiple COVID-19 EIDL applications?
Yes, you can submit one application per eligible business entity. However, at least 81 percent ownership for each business needs to be accounted for on the application. Michigan business owners have another option with a popular COVID-19 funding program called the Employee Retention Credit, which is a payroll tax credit to retain employees in Michigan.
Conclusion and Summary for SBA Loan Reconsiderations in Michigan
In Michigan, there is a lot of confusion about how to go about requesting EIDL loan funds, and how to be reconsidered for a Michigan SBA loan, after having been turned down.
Make sure before you apply again, you have all the necessary documents and information needed. You can also contact an SBA Michigan Loan Specialist to assist you through the whole process.
If you have any further questions, leave a comment below and we’ll do our best to assist your Michigan business.
Michigan SBA Loan Reconsideration Assistance
Have you been turned down for a Michigan EIDL SBA loan? We can assist you in filing an SBA loan reconsideration for your business in Michigan.
Did you already receive an EIDL SBA loan for your Michigan business? We can assist your Michigan business in requesting additional SBA EIDL loan funds.
Whether your MI business entity is classified as a sole proprietorship, independent contractor, LLC, C-Corp, S-Corp, landlord, property investments, rental property owner, or other types of qualifying small business entities in Michigan, we may be able to help you.
Schedule Your Free Michigan Disaster Loan Consultation call to see if we may be able to help.
Cover Image Credit: 123RF.com / Lenetstan, IgorBondarenko / Disaster Loan Advisors.