Visit our Videos on COVID-19 EIDL Updates

Our opinions are our own. For videos on EIDL Updates, visit our YouTube playlist.

1. SBA is definitely working faster on files. We’re seeing recent Reconsiderations getting a response in thirty days or less. The response typically requests additional documents; the response isn’t necessarily an approval.

2. Once documents are submitted. SBA’s typical dysfunction kicks in and there’s silence on the file, no status updates available, NO approvals, and, too often, DECLINATIONS.

3. DECLINATIONS. We’re seeing that SBA fails time and again to actually read documents submitted for the Reconsideration process, including failure to read SBA’s OWN specialized forms (SBA Form 3501 and 3502). Also a failure to thoroughly review tax returns.

4. DECLINATIONS II. There’s a spate of declines over the past several days. Feels like SBA is “clearing the decks” again and sweeping older files over the starboard bow.

5. OLDER Reconsiderations. It’s an absolute disgrace with the lack of activity on these files. When SBA actually works on the file, there are repetitive requests for the same documents, and failure to read the documents submitted and move the file forward.

6. Once a Loan Officer signs off.  When a file is marked for approval based on the loan officer’s review, there’s a secondary review level (including legal team as far as our understanding). This secondary review seems to take weeks and there’s no response or status update in the meantime.

7. Uploading documents to SBA portal.  This is a constant nightmare: documents do not register in the system or are marked as “incorrect” when they aren’t.

8. $2M Increase requests. So far, it’s easy to request; we’ve submitted several.

9. Funding problems. Once a file is approved and the primary “authorized signor” DocuSigns the Loan Agreement, there have been delays in receiving the funds. We solved the mystery yesterday when we discovered the SBA is emailing the Loan Agreements to ALL other owners with a 20% or greater ownership interest, but the emails often go to SPAM and the primary signor is UNAWARE of this because there’s no mention (or functionality) on the SBA portal.

10. INCREASE BACKLOG. SBA has NOT cleared the backlog. We still have dozens of Client increase requests languishing in the SBA system with NO activity since APRIL.

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How to Apply for an EIDL Loan

An updated sample of the EIDL application with Trevor's commentary on what changes the SBA has implemented when underwriting your EIDL loan.

Blue Button Strategies

Here’s our recommended strategies while you are waiting for the infamous “BLUE BUTTON” to become functional on the SBA portal for your EIDL Increase request:

Manage your anxiety. Schedule TWICE daily check-ins, once in the morning, the second in the evening.  The money’s not going anywhere, it’s not running out, and you’re not going to miss a “place in line” with millions of other EIDL applicants if you don’t submit your request within a few hours.  You can wait the day. Doing so will reduce your stress.  When you feel yourself getting stressed about not checking the BLUE BUTTON every three minutes, do the following mundane, boring, functional stuff instead:

PREPARE.  We’ve seen SBA coming back recently and requesting additional documents for the EIDL Increase requests.  YES, it’s true, we’ve seen some requests were automatically approved.  That’s the BEST CASE, obviously. Don’t assume the “BEST CASE” scenario; assume the worst case and PREPARE for the SBA request.  Here’s a list of documents we’ve seen SBA requesting to approve the EIDL Increase.  One important note: don’t assume SBA already has your documents from the list below. If they ask for it, submit it again, in an updated form (current date for your signature instead of a date from two months ago, for example).


  • 2018 and 2019 COMPLETE Federal tax returns
  • Driver’s License: COLOR legible PDF scan front and back. If the image is blurry, do it again until it is CRYSTAL CLEAR
  • VOIDED check for the destination bank account to deposit your funds. BE SURE this is the SAME account you entered on your original EIDL application. BE SURE you don’t reverse the ROUTING number for the ACCOUNT number. Yes, we’ve seen people do that!
  • SBA Form 2202. THIS is IMPORTANT.  Have a form that is current because SBA wants to confirm if you have incurred any other debt in the name of the business entity since you applied, including existing EIDL and PPP loans or other types of financing. Remember: ONLY business debt in the name of an business entity; personal debt does not go on this form. EIDL and PPP go on the form no matter whether you are an entity or a Sole Proprietor.
  • Business Plan and Revenue Projections for 2021.  See our BLOG post about how to prepare.

Here’s what we’ve experienced at Aurora Consulting in our two plus years of assisting Small Business Owners to obtain financing, including the EIDL COVID-19 loans and PPP loans:

  1. Small Business Owners don’t want to be bothered with the basic building blocks that are boring
  2. They don’t want to take the boring time to write boring business plans
  3. They don’t want to take on the mundane task of doing some basic fifth grade math to calculate income and expenses
  4. They don’t want to bore themselves to tears by spending time organizing basic documents into a neat and orderly and presentable fashion

Maybe YOU are NOT in this bucket. GOOD.

Much of what we do at Aurora Consulting is to shepherd our clients through these basic and boring tasks.  Here’s the problem: BORING leads to financing success.

Eliminate your stress about the BLUE BUTTON by BORING yourself.  It’s much simpler than you think.

Calm, Cool Heads Collect During COVID

A word (or two, or more) of advice from a financing professional of 30+ years: We strongly recommend, before you act out of desperation and anxiety, please take a moment, slow down for a moment and take care of how you handle your decision-making process when applying for the second PPP loan and any other Disaster loans.  The money’s not going anywhere.

Back in April, we managed 25+ businesses for EIDL and PPP applications. We now have close to 100. At the time, when The CARES Act rolled out we waited before submitting applications. As a result, our clients received substantially more money than if we used the “math” and other guidelines in the first days of the roll out.

If you scroll any online groups specialized in disaster financing, you will see all the confusion among business owners about the program.  There’s no clear guidance on the SBA website.  There’s no clear guidance from Lenders/Banks no matter how good they relay their message.

We’ve had so many calls with one of our trusted lender resources about the placing of new PPP loans either with his bank or elsewhere. This is the professional who, last April, provided us with the final ACCURATE guidance on how to calculate PPP application numbers.

We like the Carpenter’s Rule: “Measure Twice, CUT Once.”

Take your time; take care with your applications.  Trevor followed this rule for his 30+ year career as a Mortgage Banker and it helped him to literally make Dreams come true for First Time Buyers.

For our part, we haven’t submitted a single Forgiveness application yet for our clients because we’re waiting for the new Legislation to kick in which guides Forgiveness NOT to subtract the EIDL Grants from the Forgiveness amounts.

We encourage you all in the strongest, most honorable and passionate and sympathetic terms possible: SLOW DOWN. Take your time and apply when you have all the facts.

We know that it is worth the wait.

What To Do If Your EIDL Loan Was Declined For CREDIT?

We’ve had many interactions and exchanges with the SBA about clients whose EIDL loan was declined due to a low credit score.

What can you do if that happens? Our EIDL Blueprint is a guide for you to work through this process.

1. Ask for a Reconsideration. Often EIDL loans are automatically rejected by the computerized underwriting system. What you want is a human being to review your loan request. You get to a human by requesting a Reconsideration.

2. Prepare a Reconsideration letter. At the top of the letter include your name, company name, address, EIN (or SSN if you’re Self-Employed), and EIDL Loan number. REMEMBER: all your information must exactly match the information you inputted on the SBA website when you applied for the EIDL loan. If your name was not included as an owner or Authorized Preparer, then you cannot write the letter; only names that were inputted on the original EIDL application.

3. In the body of the letter, keep it short and concise. Request a reconsideration due to your credit explanation. Write a brief credit explanation in the next paragraph. For example, something like this, “The late payments on my credit report and the resulting lower credit score were directly a result of the COVID-19 pandemic. My income/revenue dropped dramatically and I could not pay my bills on time.”

4. Keep your credit explanation short. If you have any documentation that supports the explanation, be sure to include PDFs of that documentation with your request.

5. Sign and date the letter.

6. Send your request to pdcrecons@sba.gov.

Our advice is this: no matter how bad you think your credit is, do not lose hope. Request a reconsideration no matter what!