Since no one had any suggestions, I will tell you why this is from my investigations.
Apparently, the text block you create in the template follows the excel parameters of 256 character length. This doesn't apply to the excel form in which when you merge & center cells so that the text exceeds 256 characters. Even though you can go beyond 256 in either the template or the excel form, when you save it, they seem to clash and revert to the original excel 256 character limit.
The only work around I could come up with is to not add a editible text box in the EPDM template, and just fill in the information into the excel form. Hopefully the gurus at SolidWorks will fix this.