What To Do If You Are Denied PPP Loans?

If you have been denied all or part of the money on your PPP loan waiver application, your objection must be made in a timely manner.

You have 30 days to file an objection. The clock starts when you receive a written notice from the Small Business Administration (SBA).

What To Do If You Are Refused A PPP Loan?

This is an important element of the 30 day timeframe. It is NOT 30 days from the time your lender received the notification. 30 days after receiving notification.

In other words, if your lender calls you with this message, have the SBA notification letter stamped with the date of the day you received the letter.

Need to know facts

If you miss the deadline, the SBA will send papers to your lender stating the amount of your PPP loan that was not granted. You owe that amount. It will be too late to appeal.

The repayment of a PPP loan will be postponed until the SBA hearing and complaints office has made a final decision.

The SBA will automatically review PPP loans of $ 2 million or more. Otherwise, the SBA will not review PPP loans unless a review is requested.

raise an objection

The most common reasons why a PPP loan is not granted in whole or in part:

  • They were not eligible for a PPP loan.
  • You made a mistake in your calculations.
  • You haven’t used the money for the right purpose.
  • Your documentation was not complete.

In order to submit your complaint, you will need to gather the following information:

  1. A copy of the SBA decision letter, including the date it was received. When the SBA receives your paperwork, this letter will be used to extend your PPP loan grace period.
  2. Facts and Statements – Any documented arguments supporting your case. Documents required may include: signed copies of income tax returns reported to the IRS, quarterly salary report copies for employees, unemployment tax returns, signed copies of federal tax returns (with schedules if required) showing income from a self-employed or partner. Note that certain types of documentation must be signed. Yes, the PPP loan refusal may occur because these documents have not been signed.
  3. Your details, including your name, address, telephone numbers, email addresses and signature (your signature and / or your lawyer).

Send the information package by post to:

Small business administration
Hearing and Appeal Office
409 Third Street SW
Washington DC 20416

What happens to your objection?

The Small Business Administration Office of Hearings and Appeals assigns a judge to handle the case. The OHA judge has 45 days to respond to the appeal and must issue a notification and ordering decision prior to that time.

This legal notice will be sent to you. If you still do not agree, you must respond within 10 days of delivery. If you don’t respond, the OHA judge’s decision will become final after 30 days.

After receiving the imprint, you have two options:

Apply to the OHA for re-examination.

File an appeal against the OHA decision at the competent federal district court. You (or your lawyer) will notify:

Small business administration
Associate General Counsel for Litigation
409 Third St. SW
Washington DC 20416

Paycheck protection loan repayment status

The Small Business Administration continues to provide loans from the Paycheck Protection Program on an ongoing basis – with the agency making payments for 6.76 million claims to date.

And while the vast majority of loans are waived for all or nearly all of the loan amount, some are still being refused by the SBA. Of the $ 561.5 billion in loan relief requested, the SBA disbursed $ 542.3 billion, which means that according to SBA data as of Sept. 19, billions of dollars in credit were undrawn at that time.

Image: Depositphotos

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