We are making the SBA form 3502 available here on our website because for some reason the SBA itself is not distributing the form. It is not available on their website (SBA forms are here).
Please note that we are accountants. We would love to talk to you about managing your books, developing strategies, or preparing taxes we do not have a special relationship with the SBA and we don’t make decisions on loans.
This is a clarifying information form that the SBA requests if they reject your SBA EIDL loan and you request reconsideration.
We have managed to track down the form and you can download it here.
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.
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.
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.