You did everything right. You submitted your reconsideration request with all the documents they asked for. You waited months for a response. And then you got the email: "After careful review, your request for reconsideration has been declined."
No explanation. No path forward. Just a form letter that might as well say "Go away and stop bothering us."
You're not alone. Based on community reports and leaked internal data, approximately 90% of EIDL reconsideration requests are denied. The process isn't designed to help you—it's designed to make you give up.
- ~90% denial rate on initial reconsiderations
- Average wait time: 4-8 months
- No standardized appeal process
- Decisions often made without reviewing submitted documents
- Same reasons cited regardless of circumstances
The Top Denial Reasons (And What They Really Mean)
"Unverifiable Information"
What they say: "The information provided in your application could not be verified."
What it means: The SBA's systems couldn't automatically cross-reference your data with their databases. This happens constantly with sole proprietors, cash-based businesses, and anyone whose tax returns don't match the SBA's rigid expectations. The irony? Fraudsters with fake businesses sailed through because they had clean, made-up numbers.
"Ineligible Entity"
What they say: "Your business type is not eligible for this program."
What it means: The SBA decided—often incorrectly—that your business doesn't qualify. This catches independent contractors, gig workers, and small LLCs that absolutely WERE eligible under the program rules. They don't explain which rule you supposedly violated.
"Credit History"
What they say: "Based on our review of your credit history, we are unable to approve your request."
What it means: Your credit score was below their threshold when they pulled it—even if it was fine when you originally applied. The pandemic destroyed a lot of credit scores, and the SBA used that against applicants rather than recognizing it as evidence they needed help.
"Duplicate Application"
What they say: "Records indicate a previous application was submitted for this business."
What it means: Their broken system thinks you already applied or received funds. Sometimes it's a spouse's business. Sometimes it's a former business. Sometimes it's just a glitch. Good luck proving a negative.
"Economic Injury Not Substantiated"
What they say: "We could not verify that your business suffered economic injury."
What it means: The SBA doesn't believe the pandemic hurt your business—even though it shut down the entire economy. They want documentation they never clearly specified, and even perfect documentation often isn't enough.
Why Reconsideration Is Designed to Fail
The EIDL reconsideration process has several fundamental problems that virtually guarantee failure:
1. No Human Review
Most reconsiderations are processed by the same automated systems that denied you originally. Unless you get escalated (rare), a human might never look at your case.
2. Same Criteria, Same Result
If you didn't change anything material (which is hard when you don't know why you were denied), the system will reach the same conclusion.
3. Document Black Hole
We've heard from hundreds of people who submitted comprehensive documentation packages that were never reviewed. The SBA either lost them or ignored them.
4. Moving Targets
The SBA changed eligibility rules multiple times during the program. What qualified you in 2020 might disqualify you in 2021. They apply current rules to old applications.
5. No Real Appeal
There's no independent appeal process. You're asking the same agency that denied you to reconsider—using the same information they already rejected.
The "Second Look" That Isn't
The SBA claims reconsideration provides a "second look" at your application. In reality, here's what happens:
Week 1-4: Your email sits in a queue. No one looks at it.
Week 5-12: Someone (maybe) opens your email and adds your application number to a spreadsheet.
Week 13-24: A junior loan officer spends 3-5 minutes on your case, runs it through the same automated checks, and writes a form denial.
Week 25+: You receive a generic denial email. Your supporting documents? Probably never opened.
We've confirmed this through conversations with former SBA employees. Loan officers were pressured to process as many reconsiderations as possible per day. Quality review was impossible at that pace.
What Options Remain?
If your reconsideration was denied, your options are limited but not zero:
Congressional Inquiry: Contact your Representative and Senators. Their offices can submit formal inquiries that sometimes get actual attention. Success rate is still low, but it's better than nothing.
OIG Complaint: If you believe fraud, waste, or abuse was involved in your denial, file with the Inspector General. They investigate, though they can't overturn decisions.
SBA Ombudsman: The National Ombudsman can advocate on your behalf, though they also can't force decisions.
FOIA Request: Request your complete loan file to understand exactly why you were denied and whether proper procedures were followed.
Legal Action: In extreme cases, some applicants have sued. The CARES Act does provide some basis for legal challenge, but litigation is expensive and slow.
For most people, a denied reconsideration is the end of the road. The SBA designed a system where "no" is the default answer, and overturning that answer is nearly impossible. They processed billions in fraud but can't be bothered to help legitimate businesses.
Lessons From Those Who Succeeded
The ~10% who get reconsidered successfully share some common traits:
- Multiple submissions: They didn't take no for an answer. Some people submitted reconsideration requests 3, 4, or 5 times before getting approved.
- Congressional help: Those with active Congressional offices pushing their case had better odds.
- Media attention: Some approvals came after local news coverage of denials.
- Persistence: Calling weekly (even when nobody answered) kept applications from being forgotten.
- Documentation overkill: Sending way more documentation than requested, hoping something would stick.
Is this a fair system? Absolutely not. But it's the system we have.
The Bigger Picture
The EIDL reconsideration process perfectly encapsulates everything wrong with the SBA. They created a program that funded fraudsters while rejecting legitimate businesses. When legitimate businesses appealed, they created a reconsideration process designed to exhaust applicants into giving up.
It's not that they couldn't help you. It's that helping you was never the priority.
The priority was processing volume—both approvals and denials. Getting applications off the books. Making the numbers look good for Congress. Actually helping small businesses was somewhere far down the list.
Was Your Reconsideration Denied?
Document your experience. Your story matters for holding the SBA accountable.
Share Your Story