We are field staff at the SBA, ask us [almost] anything. - business

We are field staff at the SBA, ask us [almost] anything.


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We are field staff at the SBA, ask us [almost] anything. - business

We are field staff at the SBA, ask us [almost] anything.

***Edit: I’m signing off for questions for the night folks. Thank you for your time and fantastic questions. I really appreciated it. ***

Hi everyone,

My name is Noah and I work out of the San Francisco District Office of the U.S. Small Business Administration. Our office has been working closely with business owners and doing our best to manage calls right now. The local offices are very small outreach teams and I spend most of my days right now talking directly with our local business owners about how the shelter-in-place orders are impacting folks.

Everything from cake shops and hairdressers to tech start-ups and manufacturers come through my (now virtual) door. That’s actually normal, even during non-disaster situations! Regardless of industry and stage the uncertainty that folks share with me is universal. We’re doing what we can to alleviate some of that, where we can but also be transparent and honest about our own limitations.

When working with business owners I work really hard to make it clear what’s known and what’s not known, as well as not provide answers that I can’t answer. Sometimes I make mistakes.

Each morning our team gets incorporates new updates into our discussions as these programs are changing daily right now.

Here’s what I can’t do (unfortunately)

* Give you (specifically) a status update on either your EIDL or PPP application
* Give you (specifically) a timeline
* Explain why congress did X or tell you what congress will do
* Speak for another office (Especially office of disaster assistance processes and procedures, or for the agency as a whole outside of existing guidance.)
* Tell you what lender to use or endorse any particular lender over another. I also can’t solve or answer most questions about why a particular lender is doing x,y,z.
* Share anything that hasn’t been cleared for release.

Pretty much all of these questions I’m going to refer to my government-assigned work-from-home Bureaucat [Nina Zoobie Halloumi](https://i.imgur.com/rMVVJ2a.jpg).

The moderators sent me a list of questions consolidated by the community. I’m joined today with a field representative for the Office of Disaster Assistance West Bill Koontz and another district representative in DC David Hincapie. All three of us are field staff, so that means that we work with the public regularly, but also that we’re not policy makers.

We’re going to start this off by doing our best to answer the questions consolidated yesterday:


#**Program Organization**

###* *Which programs does SBA oversee and where can we get information about ALL of them, including the less known ones?*

We release a [national resource guide](https://www.sba.gov/sites/default/files/files/resourceguide_national.pdf) that provides an overview of all of our programs. That resource guide doesn’t include the PPP or the EIDL advance, since these were just added a few weeks ago. There are ~20-30 programs for business owners through the SBA. They fit into 4 different areas:

| Disaster | Contracting | Counseling |Financing |
|Disaster Physical damage Loans|8(a) certification program – qualifying businesses to sole source contracts and more|Small Business Development Centers|7(a) (with about 30 different flavors) – working capital loans|
|Economic Injury|Women Owned Small Business Certification|Women’s Business Centers|504 – commercial real estate loans|
|PPP loan (new)|Veteran Owned Small Business Certification|Veteran’s Business Development Centers|Microloans|
|Economic Injury Advance (new)|Surety Bonds|SCORE mentoring|SBIR seed grants for new products|
||HubZones|Procurement Assistance Centers|SBIC – equity/venture funding|
|||Export assistance Centers|

###* *What is the specific role of the SBA vs. the banks?*

This is a complicated question. The short answer is that it depends on the program. For our larger lending programs, SBA operates essentially as an insurer for loans that are made in accordance with our policies (If a lender agrees to follow our guidelines for a business loan, we will “guarantee” it – meaning that we will pay for a portion of the losses should that loan go bad.) Borrowers pay a packaging fee for our normal guaranteed loans and these fees offset any of the losses in normal times, not taxpayer dollars.

###* *Why do the guidelines the SBA is implementing seem to be different from what was described in the law authorizing the programs?*

At a high and very general level I can say that laws and procedures/rules are two different things. The latter will always be more specific and can’t conflict with laws. For instance, [the Small Business Act](https://www.sba.gov/sites/default/files/Small%20Business%20Act_0.pdf) is a 300 page law. It rarely gets updated and needs an act of congress to do so. Our [standard operating procedures, or rules for implementing](https://www.sba.gov/sites/default/files/2019-02/SOP%2050%2010%205%28K%29%20FINAL%202.15.19%20SECURED%20copy%20paste.pdf) for just one element of that act is a 500 page document that goes through a public rulemaking process where comments and feedback must be taken and responded to. It gets updated more often than the law.

The [Bureaucat](https://i.imgur.com/2xewBHV.jpg) will answer most of the why questions, except where that reasoning was included in the interim rulemaking.

###* *Why did the SBA implement a $1k/employee cap in addition to the $10k cap? On what programs does the number of FTEs limit amounts?*

**[Bill]**To ensure that the greatest number of applicants can receive assistance. The only other area where the number of FTEs may impact a business owners are where SBA size standards might make an applicant ineligible for our programs.

#**PPP/EIDL Specifics**
##Loan Organization
###* *How do EIDL/PPP loans work together or conflict?*

1. EIDL and PPP loans can’t be used for the same expenses.

2. EIDL advances (which are forgivable) will reduce the amount of forgiveness received under the PPP. This is to avoid duplication of benefits.

3. Technically an EIDL can be rolled into a PPP. Further guidance may be coming out clarifying the process and conditions under which this can occur.

4. EIDL loans are broader in what they can be used for. PPP loans are narrower. For that reason we generally suggest that payroll costs be paid with the PPP and other business needs (rent, utilities, inventory, etc) be covered with EIDL loan funds.

###* *What is the process flow for the loan/grant programs(apply, approved by SBA, apply at a bank…) or where can we see these flows?*

The simple EIDL process flow is:

* Apply online at sba.gov –> wait –> Get your advance processed –>wait –> get your loan reviewed and decided upon

**[Bill]**The status of a specific application will be available to the applicant when processing of their EIDL is near completion. SBA will provide an email notification inviting the applicant to set up an account electronically. This account will enable applicants to check the status of their application, loan decision, loan amount, sign loan closing documents, schedule disbursement, etc. Again, we appreciate everyone’s patience while their applications are being processed.

We’re not going to delve into the details on this because these processes are getting updated and changed constantly to work better. They also haven’t been shared even with the field offices in many cases. Any information shared, even from the processing centers, would be out of date quickly or only represent a narrow perspective.

The PPP has a different process at every bank. It’s different at every institution. From an SBA perspective it’s a black box on both ends, except where we’ve made requirements in the application process (such as the [information that an application has to collect](https://www.sba.gov/sites/default/files/2020-04/PPP%20Borrower%20Application%20Form.pdf). That’s by design because SBA is not the one originating these loans.

* [complete the bank process, whatever they’ve decided to make that look like] –> Lender transmits approval to SBA and gets a loan number –>[finish the bank process, whatever they’ve decided to make that look like]

###* *Does the SBA communicate directly with the businesses seeking these loans? How can we recognize legitimate attempts to communicate with us?*

SBA won’t contact a PPP borrower directly. If someone contacts you about a PPP loan and says they’re from the SBA please report this to our Office of Inspector General. They released a special [FAQ on Scams and Frauds](https://www.sba.gov/document/report–sba-programs-scams-fraud-alerts) earlier this month. If you haven’t applied for an EIDL and you get contacted by someone from the SBA telling you about it you should suspect a scam or fraud as well. Once you’ve applied for EIDL, you may be contacted by an office of disaster assistance loan officer.

#Loans and forgiveness
###* *Which loans get forgiveness, which loans are automatic, which require proof, how can we find the restrictions? What actual guarantees are there that loans will be forgiven if the rules are followed? Will the rules still be subject to change after the loans are made?’*

Only PPP loans and EIDL advances get forgiveness. EIDL advance forgiveness is automatic. PPP forgiveness must be applied to and the details on that process have yet to be released. Questions about the future I’m delegating to the [bureaucat](https://i.imgur.com/H3JU3iM.jpg)

###* *Are there restrictions on how payrolls are paid for programs that require documentation of payment of payroll for forgiveness? (i.e. changing employee, emphasizing different operations, firing/hiring but attaining a particular payroll overall*

This question would only apply to the PPP. The answer is yes, maybe and that the detailed rules on the forgiveness portion of the PPP has yet to be released. [bureaucat](https://i.imgur.com/H0aY2QB.jpg)

###* *How does forgiveness work if business conditions change like the company is forced into bankruptcy, employees refuse to return to work or the government orders the business to be shut down for more than 8 weeks?*

1. If you take the funds out and declare bankruptcy and don’t get the forgiveness the PPP will act like any other federally funded loan.
2. If employees don’t return to work you may hire others to replace them or receive forgiveness proportionally to what you are able to spend on payroll costs (the details on how this is calculated have not yet been released). You can also return the funds that you weren’t able to use. There are no pre-payment penalties for the PPP.
3. PPP funds are expected to be paid towards payroll costs even if the business is shut down. There is no requirement that the business be in operation. Some business owners have taken the opportunity to find other work that can be done remotely for their employees, some are simply paying even though noone is working, some are having employees self-study/develop new skills. There are a lot of options here.

###* *Why are loans set up so PPP forgiveness only applies if EIDL is not used for payroll even after PPP is exhausted paying for payroll?*

1. They aren’t? You can use EIDL for payroll costs, but you should document very clearly which funds (PPP or EIDL) are going towards which pay periods. Many business owners are just keeping the two totally separate to make for cleaner and easier bookkeeping.

###* *Why can the self-employed apply for 2.5 months of income but only 8 weeks is forgivable?*

This was a decision by the administrator in consultation with the Treasury. Page 12 of the Interim Final Rule lays out the reasoning:

* “This is most consistent with the structure of the Act and its overarching focus on keeping workers paid, and will prevent windfalls that Congress did not intend.”
* ” This is because many self-employed individuals have few of the overhead expenses that qualify for forgiveness under the Act. For example, many such individuals operate out of either their homes, vehicles, or sheds and thus do not incur qualifying mortgage interest, rent, or utility payments. As a result, most of their receipts will constitute net income. Allowing such a self employed individual to treat the full amount of a PPP loan as net income would result in a windfall.”

#Obtaining approvals
### * *Why are different banks requiring different documentation between what financial companies require for documentation?*

The short answer is because they have the discretion to do so. Every lender needs to exercise due diligence and make an effort to verify payroll costs. Among 5,000+ lenders you’re going to see the full spectrum of approaches here.

###* *How much does creditworthiness or credit score matter for these loans?*

PPP: Depends on the lender.
EIDL: It is a factor.

###* *What happens if multiple applications (in good faith) are submitted to multiple lenders?*

SBA’s loan system will only allow for a single application to be submitted on behalf of a borrower. The first borrower to submit will lock-out all other submitters. I’ve dealt with a number of business owners who pursued this strategy. There are upsides and downsides.

###* *Is all hope lost if an application for EIDL rejected for errors? Do they just get stuck?*

[ODA response needed]

#Loan status
###* *Where can businesses go to find their status with the SBA (i.e. confirmation numbers, status, etc)?*

For the PPP, they need to go to their lender. We can only see if an approval exists. For the EIDL they need to go to the 1-800 number. ((800) 659-2955)

###* Do you have any information about the order of EIDL grant processing?

**[Bill]**We are processing disaster loan applications and Advances on a first-come, first serve basis as fast as we can.

###* *If someone has an approval number but their bank does not act what options do they have besides waiting?*

Banks were instructed that the expectation for PPP is that they disburse funds within 10 calendar days from approval. SBA has the authority to cancel an approval if that hasn’t happened. That’s a punishment to the lender though. We can’t force a lender to disburse their own funds to an applicant.

###* *Can SBA loan confirmation numbers be transferred away from lenders who are failing to fund in a timely way?*


###* *Do the confirmation numbers have a structure (region, number in line, etc)?*

I’d advise against numerology. I’m not aware of a specific structure with much meaningful information and Application numbers are assigned as applications are received.

#SBA Structure

###* *What are tiers 1, 2, and 3 on the SBA helpline and what questions can they each answer?*

**[Bill]** Our customer call center has not provided ODA field office staff members any information about Tiers 1, 2 or 3. As with any operation, there are supervisors in the call center with oversight responsibility and more authority than others.

###* *Within the SBA, what is the role of the ODA (Office of Disaster Assistance)? What sub-organizations should we be aware of relating to this pandemic?*

**[Bill]** The Office of Disaster Assistance’s mission is to provide low interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters to repair or replace real estate, personal property, machinery & equipment, inventory and business assets that have been damaged or destroyed in a declared disaster. ODA has their own field offices, but not sub-organizations.

###* *Does the SBA outsource operations? Which ones and to whom?*

**[Bill]**Normally, no. For the COVID19 response, SBA’s ODA established a public/private relationship with an unnamed outside vendor to process COVID19 loans.

###* *How can we best recognize solicitation attempts by financial firms without proper affiliation to the SBA or access to the programs?*

There are a few resources:
1. Check the [Find a Lender](https://www.sba.gov/paycheckprotection/find) tool if they have a physical location near you
2. Ask your local SBA district office
3. See if their name showed up on this [list](https://www.sba.gov/sites/default/files/2020-04/Lenders%20participating%20in%20PPP%20by%20State_As%20of%2004%2023%2020.pdf) of institutions that made loans in Phase 1.

This can be legitimately difficult overall though because there are sometimes intermediaries that authorized lenders will allow to package loan applications for them. If a website has a “banking partners” section on their website they’re usually an intermediary or a packager. You can do detective work using tools put out by the [Treasury](https://www.helpwithmybank.gov/national-banks/national-banks.html). A regulated bank will always have that information in the footer of their website with a number that you can independently verify at their regulator’s website. For intermediaries, you just have to go off of reviews online.

###* *Customer service reps have been giving out unhelpful or confusing information. What processes are being put in place to make sure they can give us the accurate information we need?*

**[Bill]**Our field office staff are sharing any reports we receive of unhelpful or confusing comments made by employees in SBA’s call centers. SBA will release any customer service representative who is unable to properly perform their job.

###* *Outside of SBA.gov, what are the routes the SBA uses to talk to us? Where can we see a daily or weekly briefing?*

Folks can sign up for national updates [here](https://www.sba.gov/updates), or also sign up directly for smaller, more specific email distribution lists [here](https://public.govdelivery.com/accounts/USSBA/subscriber/new). You can also view our [events page](https://www.sba.gov/events/find/?dateRange=all&distance=200&pageNumber=1), where local offices and our non-profit partners are holding hundreds of webinars on a variety of topics every month.

###* *How can we see the total amount of loans made?*

Check our [Freedom of Information](https://www.sba.gov/about-sba/open-government/foia#section-header-32) page. New reports and data get published there.

###* *What communications should small businesses expect as they go through the process, including about errors, denials, progress or acceptance? (Might be integrated with another question)*

**[Bill]** The status of individual applications will be available to the applicant when processing of their EIDL is near completion. SBA will provide an email notification inviting the applicant to set up an account electronically. This account will enable applicants to check the status of their application, loan decision, loan amount, sign loan closing documents, schedule disbursement, etc. Again, we appreciate everyone’s patience while their applications are being processed. Regarding files that are suspended or delayed due to errors or denials, our field office staff have not yet been informed how files in this category are being handled or when to expect resolutions.

#Public Relations
###* *What does the SBA think of the job they have been doing so far?*


That’s a response I’ll leave to our [national press release](https://www.sba.gov/about-sba/sba-newsroom/press-releases-media-advisories/statement-secretary-steven-t-mnuchin-and-administrator-jovita-carranza-success-paycheck-protection). SBA isn’t one thing.

###* *Which businesses or industries does the SBA think need help most? Does size (smaller than “small”) matter?*

SBA exists to help all small businesses. Some industries are much more represented than others (there are just more food service and construction firms than clog manufacturers out there.)

The [federal definitions of “small”](https://www.sba.gov/federal-contracting/contracting-guide/size-standards) are often contentious, but the SBA definitions are often pointed to as more comprehensive definitions because we make an attempt to create a different definition for every single industry. You can use [this tool](https://www.sba.gov/size-standards/) or look at the table at the bottom of [this page](https://www.sba.gov/document/support–table-size-standards). The standards are designed to be broadly inclusive and for most of our programs are not the sole item used to determine eligibility.

My experience is that for our regular lending and counselling programs, business owners usually grow out of them before they become ineligible(they hire their own consultants or find they can get better terms than an SBA loan.) I don’t work as much on the contracting side of things, but I think the size standards are more frequently needing to be evaluated in those programs.

###* *What are the most common questions you have been answering?*

* Status updates of course make up about 40% of my day. That’s a hard question because our local office isn’t in a position to help most of the time.

* Not so much a question, but I spend a lot of time clarifying misinformation. I.E. “the bank says SBA rejected me” or “why does SBA require my bank do X.”

* Also not a question, but I spend a lot of time collecting stories. Even in non-disaster times business owners love to talk about their business because its what they’re passionate about and they’ve almost always invested an incredible amount of blood, sweat, and tears into their businesses. A lot of folks just want to share, and our office listens. Oftentimes I hear their stories and I know a local non-profit or resource that specializes in serving that need. We don’t do much for instance with legal advice, lease or rental agreements, but I am getting a **lot** of questions about how to manage relationships and agreements with commercial landlords right now.

# Additional questions
###* *Are there limitations on funding foreign owned but otherwise US companies built into the programs?*

For the PPP technically the program can accept these applications so long as the business is a US operated business. It is overall more difficult to document and submit these in a way that is acceptable to SBA systems though. A lender has to be willing to slow down and work closely with the borrower and SBA to get it submitted. For all of the other SBA programs, a business needs to be majority owned by a US citizen or legal permanent resident to qualify.

###* *Some applications made 3/29 and 3/30 seem to be stuck in credit pull. Is there any plan for these? (Might be integrated with another question)*

**[Bill]**We in the field offices have not yet been informed specifically how these files will be handled, or when. Any business that applied for a Coronavirus (COVID-19) SBA Economic Injury Disaster Loan (EIDL) prior to the release of SBA’s new streamlined application the week ending March 29, must reapply using SBA’s streamlined online application (in SBA’s new loan processing system) available at www.sba.gov. If a business doesn’t have an application number or received one that begins with a “2”, they must reapply under SBA’s new processing system. SBA is presently contacting everyone who applied through the old system, and asking them to reapply at https://covid19relief.sba.gov/ when applications re-open. If a business owner has an application or conformation number that begins with a “3”, they don’t need to do anything – their application is in process in the new system.

We are field staff at the SBA, ask us [almost] anything.

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45 Replies to “We are field staff at the SBA, ask us [almost] anything.”

  1. # *Edit: The AMA was conducted on Tuesday and is likely over but we’re going to leave this AMA pinned for a bit and the SBA may be in to answer questions that they missed during the session. You are welcome to post or comment. Normal rules still apply.

    Hi All. Noah has provided proof he works for the SBA to the mods. I encourage you to take a look at his post as it talks about what he can help with and what he can’t. It should also contain answers to many or all of the questions submitted over the past week.

    As always our sub’s rules apply here. Tempers are understandably short but personal attacks are not allowed. We really don’t want to shoot the messenger and Noah doesn’t run the whole program. Hopefully we will concentrate on solving problems and giving real concerns to take up the SBA reporting chain.

    *Edit: sorry if I’m being a heavy handed mod here today guys but this is serious stuff that could have a major impact on a lot of businesses. I’m not going to let the loudest or spammiest posters monopolize a conversation that hopefully will help us all. You can always appeal to the other mods and I’m not going to remove any question unless it looks to be disruptive to the process of getting answers.

  2. My loan got approved by Chase. I don’t know which account they are depositing it to yet but they said “oldest account”? So if they deposit the loan in my regular checking account can I transfer that loan amount to my payroll checking account and then do Payroll there? Or will the transfer void the 75% forgiveness? If I can’t transfer it out to another account, does that mean I have to stop all autopay and auto ACH charges?

  3. I have a fun question. When the 10k forgiven advance was in effect , did ANY businesses get it before it was rolled back into the other version? Because it sounds like they changed it because they thought it was unsustainable. Translation of bunch of people may have gotten handouts if they were at the front of the line.

  4. I started as a 1099 in November of 2019. I was approved for and received funding for 8 wks of pay for this program. I am new to being an independent contractor and want to ensure I am following all rules/regs and can have this amount forgiven. Is there anyone that can explain the next steps I need to take?

  5. Hey! Thank you so much for doing this. I just received the PPP loan in my bank account today, and I have a couple questions regarding the PPP forgiveness aspect.

    Will I have until June 30th, 2020 to rehire and restore salary wages for employees, or will I have to rehire and restore salary wages starting when I received the PPP loan? In other words, do I need to have all my employees rehired and salary wages restored by tomorrow?

    I had 7 full-time and 1 part-time consistently throughout January 2020-March 2020, but reduced employees to 6 full-time in the beginning of April. Will I need to rehire the 1 full-time and 1 part-time by tomorrow or by June 30th?

  6. I was funded with PPP a week ago. I did not receive the SBA APPROVAL #. I only have a 9 digit lender loan #. I would like to know how to obtain the SBA APPROVAL # to ensure everything flowed properly. Lender will not respond in giving it to me. SBA customer support says they don’t have it.

  7. If we applied for the PPP and bank has given us an SBA number are we home free?

  8. Bluevine states that the SBA is responsible for thier apps being processed out of order. Its sickening to see businesses that just applied this week are getting funded already. I applied 1 time 1 lendor to bluevine on 4-17! Where is my etran number!?!?!?!?

  9. We were approved for the EIDL but sadly we provided the wire routing number, not the ACH number.

    I called and the person on the phone sent an email to his supervisor and said there is nothing he can do and to wait for a reply. The bank sent the money back (BofA) to the SBA.

    My question aside from what the process is to get this fixed, is if we were approved, we we still receive the funds once this all gets fixed or will it run out?

  10. Hi Bill or Noah, I hope you are doing well. I am a landlord and file with a K-1 each year. My Llc operates at a loss and I have to put in money each year. Last December I bought a couple vacation rentals and was really excited about the income prospects. The county shut down all short term rentals. Will I qualify for anything due to my business losses? I have zero employees but pay a property manager. If I do qualify can I use the loan for better terms on my mortgages? The six month deferred option sounds good because this fall could be devastating for my rentals. I do not mind using the properties as collateral. Since this is a loan I worry about taking on more debt when I have no revenue. I appreciate your help.

  11. Hi, just want to say thanks for offering your knowledge here. It is really hard to wait and wait when you have hard working employees, that you don’t want to lose – in my industry, Home Care for elderly, when you have good trustworthy and skilled care professionals, you don’t want to risk losing them to a competitor.

  12. What to do next?

    I applied with the EIDL long form late March with every piece of documentation requested. Short form 3/30 about 2 1/2 hours after SBA began accepting applications. Confirmation number 330016****.

    Credit was pulled on 4/15.

    I was finally able to speak to a tier two this AM. He said. “Huh, and you haven’t received money? I’d try calling back next week.”

    Really? That’s it?

  13. Hi! I have a question about the portal. We have not received anything at since applying, though I do have the application confirmation screenshot. I saw where we could check the status on a portal but it won’t recognize the email address I used. Another thread said you had to create a login via an email that went to junk mail for lots of people. If that’s the case with us, too, is there a way to now create that portal login without the email? Applied 4/8

  14. Hi, we applied for the EIDL on 4/5 but we still haven’t gotten any response or updates yet. Also located in San Francisco. Thanks!

  15. What’s with this “wait for LO to email you the portal” bullshit? We know the LO are not doing shit.

  16. Hi Noah, thank you for doing this. I have 2 businesses and applied both for eidl. The first one got funded no issues, but the 2nd one got flagged as a duplicate even though they are completely different businesses and different ein. Tier 2 reps have marked as urgent, and to review, and made notes that it’s not a duplicate. The original loan officer got transferred to another project so he said he can’t help anymore. I tried your suggestions of calling the local regional office, but when I called they said they couldn’t do anything, and to call the 800 number. Tier 2 reps just say to continue waiting, anything else I can do in the meantime?

  17. Noah, I applied for EIDL on 3-30 and received an email on 4-13 from SBA. When I reached out to SBA resources earlier this week, I am told that while I have been approved, there is an error on the business name. Somehow my EIN/TIN got attached to my business name and hence SBA is not able to verify the business. So, with the SBA Tier 2 agent, I make the correction. Still No News so I called back today and I am told that while these agents can add notes to my file, a case manager or loan officer is the only one who can review or correct. My business has been closed for over 5 weeks and nothing from EIDL OR PPP and so I am in dire need for some assistance. Got any advice for me?

  18. Was approved and signed closing docs for eidl in 4/13. I’m an early apply.. 330002##. called tier 2, just got “in processing”. No Grants and no funds. 1 person llc. Seems most approved get funds in a day or 2. But 2 and a half weeks in funding?

  19. Can you please provide clarification regarding PPP loan forgiveness in regards to the June 30th, 2020 deadline.
    If you could please answer the following questions I would appreciate it:

    If by June 30th, 2020 we have restored the FTEE headcount for the period between February 15, 2020 to April 26, 2020 and by June 30th we restore the same wages employees were earning as of February 15th, 2020, will that alone qualify us for 100% loan forgiveness?

    What is meant by “Applicable Employees” in the context of wage restoration?

    Assuming we meet the headcount and wages by the June 30th, 2020 deadline, does that mean we are not required to have spent 75% of the PPP loan on payroll?

    Assuming we meet the headcount and wages by the June 30th, 2020 deadline. Does that mean we are not required to spend the PPP loan to have it forgiven?

    When referring to the June 30th, 2020 deadline is that specific to that day or is there a specific period during which the headcount and wages must be restored?

    Thank you,

  20. My PPP loan was approved by SBA on 04/09 but my bank (First Home Bank) has not disbursed the loan. I saw the status of my loan is “Active Un-Disbursed” on the SBA website

    You said SBA has the discretion to cancel the loan if it’s not disbursed in 10 days and it’s to punish the lender but the borrower will obviously be published if the loan gets cancelled. Under what circumstances will SBA cancel the loan?

  21. Is there a way I can check myself to see if my bank actually sent my app to the SBA? They keep giving me different status updates. It’s in the queue, it’s been submitted, it’s ready to be submitted, it’s with the SBA, it’s in the SBA queue. I want to know if SBA actually received my app from the bank.

  22. We applied for an EIDL advance earlier in the month but realized today that we made some errors in the application, including the wrong bank account number.

    We called the SBA but was told to wait for the loan approval process, that we are in the queue and someone would contact us– but we did not apply for an EIDL loan, just the advance (which doesn’t seem to require an approval process). The agent on the phone said there is nothing more he can do to help.

    Is this a lost cause at this point? Anyone had any luck with a similar issue? I see a similar question in the main post above, but it has gone unanswered.

    This makes a huge difference for us, as I’m sure is the case for many. Any advice would be appreciated.

  23. Hi,

    Thank you so much for helping us all with this.

    I received portal invite on 4/18 and confirmed loan amount on 4/19. It is still showing as my application being processed. Called tier 2 every other day, and they say it has an LO assigned, but do not see any notes or anything else. No further communication received from SBA since we received the portal invite. What can be holding the application back, and what can you recommend we do?

    Thank you!

  24. Ask you anything? Ok.


    Are you aware your organization is a disgrace and a laughingstock and just try to ignore that fact, or are you in fact not aware? Which is it?

    Question 2: Why do you guys continually lie to people and say its first come first serve when thats clearly impossible?

    Question 3: Why do they ignore the 10k grant per applicant law that was passed, without so much of an acknowledgement or response? And what does Jovita think gives her the right to rewrite laws that were passed by the Senate?

    Question 4: Are you aware that the Tier 1 reps have no business slinging Ice cream out of a truck, let alone working for a government agency? And are you aware how many lies we are all told on a daily basis in a time when we are desperate for real answers?

    Question 5: Are you aware the SBA is being sued because of the disgraceful way they have handled this entire thing? [https://www.orlandosentinel.com/coronavirus/jobs-economy/os-bz-coronavirus-sba-lawsuit-20200428-s6d56ax575gfbav7b4bmi4imri-story.html](https://www.orlandosentinel.com/coronavirus/jobs-economy/os-bz-coronavirus-sba-lawsuit-20200428-s6d56ax575gfbav7b4bmi4imri-story.html)

    Question 6: Why does Jovita cling to the funds for dear life instead of dishing out the funds as Congress asked, then simply ask for more funding as they clearly requested? Instead she refuses, and ignores the letters she keeps getting sent by the Senators and Pelosi and Mnuchin. One wonders how she still has a job.


    In a separate letter to Carranza and U.S. Treasury Secretary Steven Mnuchin, Democratic members of the New York City’s congressional delegation also expressed concern that the Economic Injury Disaster Loan and Paycheck Protection Program “are not being implemented as Congress intended” and “SBA has failed to … award grants in a manner consistent with Congressional intent.”

    “The SBA has metered the amount of the EIDL grant to $1,000 per employee, even though Congress specifically stated that the applicant, not the agency, has the sole authority to determine how much grant money they receive up to $10,000,” the letter states. “Moreover, the law requires SBA to issue advances within three days of receipt of applications, yet small business owners say they are still waiting weeks after applying.”

  25. What are the requirements for the distribution of the PPP to the employees given that we’d like the loan to be forgiven? Obviously 75% of the loan has to be payroll, but can that be broken down to reward those who stayed with us and didn’t get on unemployment?

  26. >* Why did the SBA implement a $1k/employee cap in addition to the $10k cap? On what programs does the number of FTEs limit amounts?
    >**[Bill]**To ensure that the greatest number of applicants can receive assistance. The only other area where the number of FTEs may impact a business owners are where SBA size standards might make an applicant ineligible for our programs.

    What gives the SBA the power to literally disregard laws passed by Congress?

  27. The below questions apply to PPP.

    1) Can we give employees raises to give them incentive to come back on the payroll and have it forgiven?

    2) Can we hire new employees for administrative duties during the 8-week period and have it forgiven even if most of our business is closed?

    3) Can we use the loan during the 8-week covered period to cover expenses that are not payroll, rent, utilities, and mortgage interest, with the understanding that they will not be forgiven? Will that jeopardize forgiveness for our authorized expenditures?

  28. How much of the new funds have been taken so far? Are most of the funds already spoken for?

  29. It seems the PPP is simply taking the responsibility of unemployment off the shoulders of the government and putting it on small businesses.

    I own a **seasonal manufacturing business in NEW YORK**. I have 3 FTE and about 15 part-time/seasonal. This is our busy season. **Manufacturing means there are no work from home jobs,** so essentially I’d be sending my employees (some who have only been with us a couple weeks) money to just stay home, while they are already making more on unemployment. *My employees would prefer to stay on unemployment than take less to be put back on payroll.*

    **Businesses in middle America and states that are reopening have the ability to pay their employees to actually work. This seems to be a significantly unfair regional advantage.**

    We received our PPP on 4/13 and still have not decided how to implement it. Do we only have the 8 weeks to use it? I’ve read multiple conflicting articles, one stating that you just need to bring employees back by June 30th.

    What is that June 30th date I keep seeing?

    I thought the **whole point of the PPP was to help keep business afloat** after the pandemic is over, not just use small businesses as unemployment insurance.

    The best way we could implement these funds would be to wait until the employee restrictions have been lifted and use the PPP to pay our employees to WORK. Paying them to stay at home does absolutely nothing to help our business, only creating more work to figure out how to get forgiveness on it.

    Again we are at a **unfair advantage** owning a business in New York vs a state like Wyoming, Montana, etc…

  30. It is nice that the SBA is offering to have you here for a question and answer session, but another question I’d like answered, is why so many people have waited and waited and then when they call, they are told their “banking information is incorrect, can’t be verified etc”?

    Was there a glitch in your system that had the information going in backwards? That’s what I believe. It is unrealistic that so many have had their applications just sit idol because of this. And in addition, when this money was mandated to get out fast in the terms of a $10,000 grant, why when they take the time to notate that the banking information is incorrect in the system, do they not also generate an email to the applicant so the applicant can correct this? And, why do they just allow them to sit while they continue to process other grants out of order? Why not put someone in charge of incorrect bank accounts to move the grants forward?


    Honestly, I believe that this is a scam to “cherry pick” applications for approval. This is not what the white house or Congress intended. What are you guys doing to fix this? Why, even after correcting the so called “banking error” are you not doing anything to get the grants out to the applicants. On Reddit alone, there are many, many applicants that attest to applying on 3/30 and 4/1 with no grants, no communication, only to learn that their banking information could not be verified. When they try to get help to move forward, no one at the SBA can do anything.


    Please answer these very basic questions.

  31. Hey Noah,

    Why are you not answering all the people on here that are asking why when they applied earlier than many, they have not received an advance or a loan or any communication at all? Why don’t you answer us or find someone at the SBA who can. I’ve been on the phone multiple times and it is ridiculous that no one has this information. You are here to provide information, so answer this one very important question. If you can’t, find someone who can and let them get on here.

  32. Why are you processing applications out of order? The mandate was a first come first serve basis.

  33. My business started legally on 01/2018. It sat doing nothing until we started hiring employees slowly at very small pay rates in April of 2019. I would say September 2019 – Now actually represents my full monthly payroll cost and staff size. If I use a yearly calculator, it’s a fraction of my true payroll cost. Most applications are requiring all of 2019 data. What do I do?

  34. What is the credit score criteria you are looking at? Obviously some credit scores have dropped significantly due to having to rely on our credit cards and increasing our percentage rate of usage.

  35. I’m a single member LLC that started in January – everyone wants a schedule C from 2019 but I obviously I don’t have that. Has there been any update on what the SBA is accepting as proof of payroll?

  36. If ive had my credit pulled by the sba for an eidl does that mean I will get the advance soon? Also, is there any news to the house’s letter about providing 10k to applicants? Thank you

  37. My bank said my PPP LOAN is in “pre-trans” has anyone heard this term? What does it mean?

  38. Here goes…crapshoot I know.

    Received my grant April 14 ($3000), told wait for loan balance to be offered for acceptance. Still waiting. However the big issue is that the amount requested was for existing payroll, expenses. Was about to do big expansion and had funding in place to close Feb. 14. Unfortunately was unable to close as critical contracts required clearance from folks in, of all places, Milan Italy. Not clear when that group will be up and running, but eventually maybe 1 year out.

    So can I increase requested amount to reflect our expansion (new facilities and about 4 more employees). This increase would be from $45000 to $150000? Would this require a whole new review and application? Would it result in smaller initial amount being refused, which we could definitely use in any event?

    In other words, best not to rock the boat if loan goes forward?

    Thanks if I get an answer,

  39. Any update or idea for those of us stuck in credit pull? Mine was pulled on the 14th and nothing since. 3/30 application less than 3300094xxx..low applicatio number I believe but nothing so far…

  40. Can you go over the appeals process? I was declined EIDL and advance due to credit. I wrote an appeal 11 days ago. How long does the process take? How can I appeal to get the advance only?

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