14 Months Waiting for a Decision
A restaurant owner in Texas applied for an EIDL increase in October 2024. After submitting all requested documents within 48 hours each time, they waited over 14 months with no decision. During this time, their application status alternated between "processing" and "under review" with no explanation. Calls to customer service provided no information beyond "it's still being reviewed." The business closed in August 2025 before any decision was made.
Wait Time
14+ Months
Documents Submitted
23 Times
Outcome
Business Closed
Flagged as Fraud Despite 15-Year Business History
A manufacturing company in Ohio with 15 years of operations and 40 employees was flagged for fraud review on their EIDL loan. No explanation was provided. The loan was moved to collections while the fraud review was pending. The business owner provided tax returns, bank statements, and employee records going back a decade. After 8 months in limbo, they were told the flag was due to their address being similar to a known fraud case. Resolution required hiring an attorney at $15,000 in legal fees.
Business Age
15 Years
Legal Fees
$15,000
Resolution Time
8 Months
Documents Uploaded 17 Times, Still Marked as Missing
A consulting firm owner uploaded the same IRS Form 4506-T seventeen times over four months. Each time, the portal would accept the upload and show confirmation. Days later, the document would be marked as "not received" and a new request would be sent. Screenshots and confirmation numbers meant nothing. Customer service representatives could not explain why documents were not being processed. The application was eventually denied for "failure to provide requested documentation."
Times Uploaded
17
Duration
4 Months
Outcome
Denied
Denied for "Unsatisfactory Credit" Despite 750 FICO Score
A retail store owner with a 750 FICO score was denied for "unsatisfactory credit history." When they requested clarification, they were told there was a derogatory item on their report. After obtaining credit reports from all three bureaus, no negative items were found. The reconsideration process took 5 months. Eventually, they discovered the SBA had pulled an old report showing a paid-off collection from 2018. Despite providing proof the item was resolved, the reconsideration was denied again.
Credit Score
750 FICO
Reconsideration Time
5 Months
Outcome
Denied Again
Tax Refund Seized Without Warning
A small business owner received an EIDL loan in 2020. They made every payment on time for three years. In early 2025, they received a notice that their loan had been "transferred" to a new servicing center. No payment instructions were provided for the new servicer. After two months of trying to find out where to send payments, their account was declared delinquent and referred to Treasury. Their 2025 tax refund of $8,400 was seized without prior notice that they were in collections.
On-Time Payments
3 Years
Amount Seized
$8,400
Warning Given
None