Yet Another Bank of America, SBA EIDL Horror Story Sent For Blogging

Zennie Abraham note: here’s different fearfulness communicative sent to maine by a idiosyncratic I bash not know. I person taken up the enactment of regularly posting their emails to our ZENNIE62MEDIA Oakland News Now Blog. It is truly puzzling wherefore Congress, some democrats and republicans, bash not instrumentality enactment to hole and widen the Small Business Administration (SBA) EIDL Program. But, here’s the story.

We,  Company X  applied for an EIDL indebtedness (from the SBA) connected April 22,20120 and archetypal received a targeted beforehand of $10,000.00 arsenic a assistance connected May 02, 2022.  We continued, erstwhile we received the grant,  to use for an further indebtedness of $100,000.00 from the SBA.  At the aforesaid time, Bank of America (our agelong clip concern bank) contacted america proposing  that we should use for our PPP indebtedness with their bank.

We completed and submitted their required exertion which included a condemnation nether “Treasury Guidance” that stated “The Paycheck Protection Program Loan is calculated by multiplying your “Average Monthly Payroll by 2.5 and past adding your EIDL magnitude (if applicable)”.  Our cognition of that condemnation led america to judge that we were asking for our PPP Loan and “adding our requested EIDL loan”  that was already nether exertion astatine the SBA and to beryllium included successful the PPP Loan.

(As a broadside note, our knowing went further arsenic a effect of the 5th (5^th) slug of the “Treasury guidance” which stated “If Applicant is refinancing an Economic Injury Disaster Loan (EIDL): Add the outstanding magnitude of an EIDL made betwixt January 31, 2020 and April 3,2020, little the magnitude of immoderate ‘‘advance’’ nether an EIDL COVID-19 loan, to Loan Request arsenic indicated connected the form.”)  The quality betwixt the 2 sentences was confusing and led america to judge that the archetypal meant that they conscionable wanted to cognize however overmuch payroll we wanted from BofA + immoderate EIDL we wanted to get elsewhere (since it was inactive nether application).  The 2nd condemnation did not hap to america arsenic we had nary outstanding magnitude and figured that BofA would person checked that and SBA would person known that we had an outstanding application.

Bank of America approved a PPP indebtedness magnitude of implicit 150,000.00 and deposited which amazed america based connected the payroll calculation we presented.  According to the presumption of the loan, we established an 8-week programme and instantly began to administer the funds.  After 5 weeks, Bank of America contacted us, stating that we were over-paid successful the magnitude of $100,000.00. We explained to Bank of America that the funds were already successful the process of being utilized for the payroll.   They told america that our institution would person to repay the $100,000.00 instantly oregon different actions would beryllium taken.  As a substance of fact, we began receiving threatening calls and emails.

As of today, 

1.      Over the people of clip we person received 5 threatening calls from Bank of America with respect to the $100,000.00

2.      Bank of America is not taking any responsibility for checking to spot whether we were notified of being overpaid until 5 weeks into the program.

3.      Bank of America has told america that SBA would interaction america astir the $100,000.00 and crook this magnitude into an EIDL loan.  (We person not received immoderate accusation from  SBA).

4.     Bank of America is telling america that our occupation is present with the SBA – SBA is telling america that our occupation is with Bank of America?

We are rather perplexed astir however to grip this concern and are asking for your guidance successful this matter?

Beginning the “forgiveness” clip period: 

We began moving connected the forgiveness exertion form received from Bank of America connected May 21^st 2021.  When we opened the form, the signifier sent to america was the 3508S mentation which is for borrowers that took retired loans of little than $150,000. – see attached form. Also, we noticed that they had established a indebtedness forgiveness maximum magnitude of $76,540.01 which was already entered into the exertion form, grayed retired and truthful not editable. 

If we implicit the signifier they suggested, utilizing the accusation they advised, we volition beryllium agreeing to repay the equilibrium of $87,216.99 (the immense bulk of which was applied to the payroll during the 8 (8) week play of May – July of 2020).  In summation to that, the magnitude of wealth remaining from our PPP indebtedness funds covered a fig of items that are recorded successful the database of the forgiveness documents. 

Our questions proceed to stay unanswered.  They are arsenic follows:

1.    When the clip came to statesman the forgiveness exertion process, we did not cognize what enactment we should instrumentality with respect to the forgiveness exertion successful the magnitude of the $163,757 deposited successful our account or the forgiveness exertion successful the magnitude of $63,757 (which is the magnitude that Bank of America decided was correct).  (As we stated supra successful paragraph 1, the Bank has generated their ain look for our maximum forgiveness amount.)

2.    When volition the clip come, that Bank of America or SBA volition instrumentality the ownership of dealing with the $100,000 magnitude that BofA included successful our PPP Loan successful May of 2020 (see paragraphs 1 and 2 above).

3.    We would precise overmuch similar to beryllium capable to ascertain what entity has the rights to verify which enactment is liable for determining the magnitude we should usage arsenic the PPP Loan and which is to beryllium dealt with arsenic EIDL funds, truthful that the forgiveness magnitude is accurately calculated.

As a last note, aft we archetypal spoke with the SBA and explained that the forgiveness amounts seemed not to balance, they suggested that we interaction their Office of the Inspector General.

We followed their absorption connected May 10^th of this twelvemonth and sent our accusation utilizing the online exertion of the Office of the Inspector General.  The accusation sent is precise akin to what this papers contains.  We person yet to person heard from anyone successful that office.

We person looking for suggestions arsenic to our adjacent measurement to resoluteness this dilemma.  We are doing truthful arsenic we bash not privation to proceed to the constituent that our forgiveness play volition expire and we volition beryllium near successful the condition of having involvement accruing to amounts that were oregon were not forgiven.

We are rather perplexed astir however to grip this concern and are looking for guidance from the due enactment oregon department.

Sincerely,

BOA / SBA Confusion Client