What is EIDL Reconsideration?

EIDL reconsideration is a formal process to appeal a declined or modified SBA disaster loan application. If your EIDL was declined or approved for less than you requested, you can submit additional information and ask the SBA to reconsider their decision.

When to Request Reconsideration

You may want to request reconsideration when:

• Application declined: Your loan was not approved
• Insufficient amount: You were approved for less than requested
• Incorrect information: The SBA made decisions based on incorrect data
• Changed circumstances: Your situation has improved since the initial decision
• Additional documentation: You have new information that supports your application

Common Decline Reasons

Understanding why you were declined helps address the issue:

• Unsatisfactory credit: Credit history did not meet standards
• Unverifiable information: SBA could not verify business or income data
• Ineligible business type: Business category is excluded from the program
• No economic injury: Could not demonstrate disaster-related loss
• Prior disaster loan issues: History of default on SBA disaster loans

How to Request Reconsideration

The reconsideration process typically involves:

• Written request: Send a letter requesting reconsideration
• Reference application number: Include your loan or application number
• Address the decline reason: Directly respond to why you were declined
• Provide new documentation: Include evidence that resolves the issue
• Submit timely: There are deadlines for reconsideration requests

Documentation to Include

Depending on the decline reason, you might include:

• Credit explanation letter: Explain credit issues and show they are resolved
• Updated financial statements: More recent financials showing stability
• Additional tax returns: Complete tax documentation
• Business verification: Licenses, registrations, or other proof of business
• Economic injury evidence: Documentation of how the disaster affected you

Credit-Related Declines

For credit issues, you can:

• Obtain credit reports and check for errors
• Dispute inaccurate items with credit bureaus
• Write an explanation letter for legitimate negative items
• Show improvement if credit has recovered since initial review
• Add a co-borrower with stronger credit (if eligible)

Timeline and Expectations

Reconsideration processing takes time:

• Initial response may take 2-4 weeks
• Complex cases can take months
• You may be asked for additional information multiple times
• Approval on reconsideration is not guaranteed