What does the Advance Child Tax Credit mean for you?
Category: COVID-19
What is form 3502
This is a clarifying information form that the SBA requests if they reject your SBA EIDL loan and you request reconsideration.
Where can I find SBA form 3502
We have managed to track down the form and you can download it here.
When do I need to submit form 3502
The SBA may request this form from you. Generally, they only request the form after they have rejected your EIDL application and you have requested that they reconsider. We have seen that they send an email with a request for the form, they say it is attached but it isn’t.
What is the SBA looking for in this form
They are not clear. But according to the rejection letter and our conversations with the SBA they are looking for economic injury. Since they are only asking for information relating to 2019 we think what they are looking for is profit in 2019. We have seen that companies that the SBA is rejecting loans from companies where costs exceed revenue.
Since costs and revenue were what they were in 2019, you can’t change that. But you may be able to make the argument that you were investing in growing a company that would have otherwise been profitable this year had COVID-19 not hit. We do not yet know whether the SBA will accept this argument.
Should I accept an EIDL loan
This is a loan so there is even a question as to whether you should accept it. Do you need it? Do you want to pay the interest? Read our Analysis here.
