The SBA announced last week that the EIDL backlog was cleared, making good on their promise to process all waiting EIDL applications by mid-August. According to our surveys, businesses are still waiting to be approved or hear back from the SBA. Here is the data we collected.
A Majority of Businesses Are Still Waiting or In Reconsideration
According to a recent survey of business owners who use the Skip app, 25% are still waiting for a decision and 40% have been denied or are in reconsideration. Our YouTube poll this week of over 3, 300 YouTube subscribers had similar results. This stands in stark contrast to the SBA's announcement that the EIDL backlog was cleared. The most likely scenario for this discrepancy is that the SBA cleared "a backlog," or one channel of applications.
14% of businesses reported that they did not apply for an increase but are interested. Before applying for an increase, it's a good idea to check the amount that you qualify for so you request the maximum amount possible. Thankfully, 20% have received an increase.
Most Businesses Are Still Looking For More Funding
The vast majority of businesses are still looking for more funding. Many small businesses are still waiting for a decision from the SBA, but many have received funding and are waiting for an increase. Two weeks ago the SBA announced EIDL 2.0 in a closed webinar, with a launch date of August 16th. To date, the SBA has not announced EIDL 2.0.
📌 Pro-tip: Try Skip Plus for 2 weeks for free and never miss out on another major funding opportunity.
Most Businesses Need Less than $100K
Of the businesses that need more funding, 79% reported needing less than $100K. EIDL 2.0 would increase the loan amount cap from $500K to $2 million, which would largely benefit businesses who are constrained by the $500K limit. Businesses are also looking for grants to give them a financial boost. If you were denied an EIDL loan and can't wait for reconsideration, there are private lending alternatives to look into.
Only 1/3 of Businesses Are Using Skip For Funding Assistance
Of the 3,000 businesses that took or survey, only one third are using the Skip app or their Skip dashboard to find financial assistance. Every week our team scours the internet to find grants and other financing options that Skip Plus members can apply for.
According to our survey, there's a higher correlation between people using the Skip app or website and people that have received their EIDL loan increase. This is likely due to users finding out about the EIDL loan increase application earlier on, and being able to apply early or submit a reconsideration letter.
Conclusion: Businesses Still Need Funding
Based on our survey data, as well as our survey on YouTube, many businesses are still waiting for their decision. This means that the SBA did not clear "the backlog," but perhaps cleared "a backlog." Eligible businesses could receive additional funding when the SBA released EIDL 2.0.
📌Pro Tips: Join thousands of businesses that receive small business grants and loans updates, twice per week on our app, and set up your funding tracker. You can also read about other ways to fund your current or next startup.
