dChan - Q Origins Project Archive

SBA Frustrations - Epoch Times

A Small Business Owner’s Frustrating SBA Loan Experience

–SNIP–

All business owners had to do was fill out a loan application, which required from us the U.S. Small Business Administration (SBA) Disaster Business Loan Application, the IRS form 4506-T, and personal financial statements.

We assembled these papers after consulting with our business tax representative. Upon returning to the website to upload these scanned documents, this option was no longer available. What was now available was the Economic Injury Disaster Loan (EIDL).

The EIDL came with a promise of an advance of up to $10,000 per business to “keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.” These EIDL advances were to be provided to businesses “within three business days.” The advance would not have to be repaid “under any circumstance.”

I submitted my application on March 31. For a moment I was set at ease because I, along with many other business owners, was under the impression that this shutdown could go into a month, possibly longer, and $10,000 could cover our business expenses for that period of time. Until then, we would batten down the hatches and get as much work as possible.

But then three days went by. Then five. Then six. I finally called the SBA and waited for 76 minutes to talk to a representative. I fully anticipated a long wait time, and so was not agitated at waiting. The representative was very informative, very understanding, and very calm during the conversation. He informed me that after our business received the $10,000 advance, we could apply for two separate $25,000 loans.

The reason we had not heard back from the SBA was due to the massive amount of applications. Instead of three days, it would be seven, but was assured I would be contacted that week. That was a Monday. The week went by as quietly as the previous. The following week rolled around and 14 days had officially plodded by without a peep from the SBA.

On day 15, I received an email from the SBA informing me that the advance had changed from up to $10,000 to $1,000 per employee, of which we have two: me and my business partner. From a possible $10,000 to a definite $2,000.

–1000 MORE WORDS–

https://www.theepochtimes.com/a-small-business-owners-frustrating-sba-loan-experience_3314473.html