We’re working on quite a few Reconsiderations for our clients. Here’s some advice for you all based on our recent conversations with SBA Agents and documents requests from the Reconsideration Team at SBA:
- IRS 4506T: The IRS is requiring a “wet” signature on the form. That means you have to physically sign a paper version with a pen, scan it in to your computer and submit. We’ve been using DocuSign for our clients’ forms successfully for the most part, but recently hit a snag with one file where the Reconsideration Team kept requesting a new 4506T. In my conversation with an excellent SBA Agent, she revealed this concept of the “wet” signature. Trevor was a Mortgage Loan Officer prior to our Consulting business and we’ve used DocuSign for years. Oh. Well.
- Revenue Projection and Business Plan. We’ve noticed from posts in a Facebook Group and now with two of our own clients that SBA is requesting a revenue projection for the next 12 months. Between you and me and the wall, I’m not sure how any Small Business can project revenue during an ongoing pandemic, but SBA is asking for it. We haven’t determined yet how we’re going to respond to this request. The “Business Plan” aspect can, according to SBA, be a simple narrative of how you’re keeping your business running.
- SBA changing over the online portal the weekend of JAN 15-17. We’ve already noticed glitches in the online portal over the last few weeks. One SBA Agent opined this is probably the result of the system changeover. To that end, we recommend not submitting a new EIDL Application, or uploading requested documents through the portal, or submitting a new Reconsideration until after JAN 18. That’s our strategy for our clients, anyway.
- Funding Approved EIDL loans. For most of the past 10 months we’ve seen our clients receive funds within 48 hours of signing Closing Documents. In two instances in the past two weeks, funding took 5 calendar days. Nail-biting continues during the disaster.
- Continuing confusion of the EIDL Grants. We read an excellent article in an NFIB blog yesterday. The author sought to clear up this ongoing confusion about the $10,000 CARES Act EIDL Grants that many businesses either did not receive or received only partial amounts. Add to this the confusion over the NEW EIDL Grants under the Second Stimulus Legislation.
While we believe the NFIB is a “trusted resource” we defer to our own Chief Financing Rock Star, Trevor Curran who has 30+ years as a Mortgage Loan Officer originating Government loans: wait for the official Governmental guidance.
SBA has not yet released any rules regarding these EIDL Grants. There’s no update on the SBA website, and nothing in the email newsletter we received this morning from our SBA Regional office. While your anxiety over getting this much needed money continues (we feel your pain, we were shorted the Grant too!), our advice is to continue waiting for the official guidance from SBA on this matter.
We’re happy to share our professional experiences to provide vital—albeit anecdotal—information that you can use to achieve a successful result with your SBA EIDL and PPP requests! We hope this information helps!
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