[mistamca]

Ask them what their NAICS code is or what COGS is? Hahaha....

It is not that cosmic. "Hi XYZ - please send over 2019 & 2020 tax returns so we can run some quick numbers for you and tell you what you qualify for. If you do not have 2020 tax returns, then send over your P/L & B/S"

[goatFunding]

It is not that cosmic. "Hi XYZ - please send over 2019 & 2020 tax returns so we can run some quick numbers for you and tell you what you qualify for. If you do not have 2020 tax returns, then send over your P/L & B/S"

If a merchant got 500K originally and now wants to get the additional 1.5M how hard is it?
What does he need to do exactly? anything to look out for?

[abfunders]

If a merchant got 500K originally and now wants to get the additional 1.5M how hard is it?
What does he need to do exactly? anything to look out for?

What about using the ERTC as financing? Did they already get that?

[Olderguy]

You submit for additional funding...contact me and I'll show you how. Trick is how much to ask for....it is a sliding scale bar. I've been successful doubling the original loan amount. Client will get new loan docs with both loans combined into one new loan.

Next Steps for Loan Increase Request for COVID-19 EIDL Program

Dear SBA Borrower:

We received your request to increase your COVID-19 Economic Injury Disaster Loan (EIDL). To continue processing your request, please complete the following steps:
Log into your SBA loan portal account at: https://covid19relief1.sba.gov/
After you log into your account, click on the button that reads “Request More Funds”
The “Request More Funds” button will only be visible if your current loan amount is not already at the maximum loan limit
Next, you will be asked to disclose if any changes have occurred since the original EIDL application was submitted, such as any owners of 20% or more of the applicant business being currently involved in a bankruptcy
You also will be asked which form was used for the applicant business’s most recent tax return, such as Form 1040 (Schedule C, E or F), 1065 (Partnership), 1120S (S Corporation), or 1120 (C Corporation)
Next, you will use the slider bar to select a new increased loan amount
You may be required to electronically sign an IRS Form 4506-T allowing the SBA to obtain tax transcripts directly from the IRS
Once these steps are completed, you can submit the loan increase for processing

Note: If you are unable to log into your SBA loan portal, please use the Forgot Password feature. If you continue to experience issues logging into your portal account, please contact our customer service team at DisasterCustomerService@sba.gov.

We will continue to process increase requests in the order they are received. Due to the high volume of incoming requests, it may be several weeks before you receive a response from SBA on the final steps. If you have any questions regarding the COVID-19 EIDL program, or SBA's other COVID relief programs, please visit our website at SBA.gov/relief for the most current updates.

[mistamca]

If a merchant got 500K originally and now wants to get the additional 1.5M how hard is it?
What does he need to do exactly? anything to look out for?

The additional 1.5mm is looking like they might require more underwriting for it. The main take away that I got from the last conference call is their current definition of economic disaster or better what is NOT economic disaster. They are considering that if you have revenue higher in 2020 then you did not suffer economic disaster. This is too simple of a way of looking at it & unfair for small businesses.

For all 1.5mm increases, they required way more stips. For example, they are requiring a YTD schedule of liabilities but do not ask for YTD financials.

I have a couple of clients that have their request lowered by SBA (2mm to 1.2mm) due to affordability but they are not providing any guidance on what they want for debt service.

This program also ends EOY so unless congress extends the goal post, then everything will need to be wrapped up by then which seems very unrealistic.

[Olderguy]

If a merchant got 500K originally and now wants to get the additional 1.5M how hard is it?
What does he need to do exactly? anything to look out for?

If they have business real estate, they will lien the property for loans over $500,000 The loan amount guidelines are 2019 tax return revenue minus COGS X 2 minus the EIDL loan advance. Fico goes from 570 to 625 for loans over $500,000.

[ryan $]

If they have business real estate, they will lien the property for loans over $500,000 The loan amount guidelines are 2019 tax return revenue minus COGS X 2 minus the EIDL loan advance. Fico goes from 570 to 625 for loans over $500,000.

I dont trust people with 2 first names.

And, gmail addresses.

[Olderguy]

I dont trust people with 2 first names.

And, gmail addresses.

Actually I have three first names.

And you trust MCA lenders?.....hahahahaha...

....and having several email addresses through gmail has it's advantages with merging contacts, spreadsheets, etc.

Lastly I don't really need your trust do I?