Reconsideration of Declined Loan Applications SBA Economic Injury Disaster Loan (EIDL)

FAQ#: 235 published 4-23-2020 updated 1-4-2022

Updated: 7:13PM CST 5-13-2020
Change Log: updated with email address and deadline.

When you are declined by the SBA you will be given a code.

This code references the reason you were declined. We are only interested in SBA Agency Codes:

  • C10 Failure to complete and return all loan closing documents. (Discovered / Proven)

  • C11. Failure to satisfy all terms and conditions of the loan.

  • C12. Adverse change. - IHP referral. (Discovered / Proven)

  • C13. Adverse change. - Other. (Discovered / Proven)

  • C14 Subsequent recoveries exceed verified loss.

  • C15. RESERVED

  • C16. Other reasons. - (Agency Decision)

If the call center says they don't see the code ask for a manager to pull the code. If they do pass you to a manager ask them to email the code and reason.

If they claim there is no code then they are not SBA employees, I have collected in my SBA research time over 1,158 cancel codes so don't believe they don't exist. A letter will be sent to you within 10 days by postal mail. Your code will not be listed in this letter. But, from the format of the letter I can most likely match the letter to a code.

SBA SOP 50 30 7 7.28 published 2018 ref: Disaster Loans

7.28. RECONSIDERATION OF DECLINED LOAN APPLICATIONS.

General Rule: Declined applicants can present additional information which may overcome the reason(s) for the decline.

D. Content of Request: The written reconsideration request must contain all significant new information to overcome all of the initial decline reasons. If the most recent financial statements are older than 12 months, business loan applicants must provide current financial statements. SLOs can accept these requests if the applicant complied with the terms of the decline letter.

The reconsideration decline letter should state the following:

  1. The reason(s) the applicant was initially declined

  2. Whether or not the applicant was able to overcome the original decline reason(s) and

  3. Any new decline reason(s), if applicable.

7.28. RECONSIDERATION OF DECLINED LOAN APPLICATIONS.

General Rule: Declined applicants can present additional information which may overcome the reason(s) for the decline.
D. Content of Request: The written reconsideration request must contain all significant new information to overcome all of the initial decline reasons. If the most recent financial statements are older than 12 months, business loan applicants must provide current financial statements. SLOs can accept these requests if the applicant complied with the terms of the decline letter.
The reconsideration decline letter should state the following:

The reason(s) the applicant was initially declined
Whether or not the applicant was able to overcome the original decline reason(s) and
Any new decline reason(s), if applicable.

NOTE: The letter to the applicant should also indicate 30 days to request an appeal of our decision. However, if the decline upon reconsideration contains any new reason not previously conveyed to the applicant, we can extend the time frame to a total of 90 days (the standard 30 days plus an additional 60 days), with approval from the CD/PDC.
All required and supporting documents must be included in a single filing. All forms requiring signature must be signed and dated. Incomplete applications will not be accepted by the SBA.

U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Rd.
Ft. Worth, TX 76155-2243
If you were declined a Economic Injury Disaster Loan (EIDL) and disagree with the decision from the SBA you should request reconsideration by follow the steps below.

Mail your request to the address at the top of the decline letter or
Fax your request to: 202-481-5931 or
E-mail your request to pdcrecons@sba.gov

Your request must:

Be in writing and be received as soon as possible (but no later than the DATE THAT IS 3 MONTHS FROM DATE OF APPLICATION DECISION DATE).
Contain all significant information that will address the decline/withdrawal reason(s).

If you have any questions, please contact 1-800-659-2955 or (TTY) (800) 877-8339
My Note: If your Reconsideration is declined then you would file your appeal. I will post information about this process once we have our first reported and official decline of a properly filed reconsideration.

7.31. APPEAL OF RECONSIDERATION...


Additional Resources:

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