Apply For Ppp With Bank Of America

Apply For Ppp With Bank Of America – A pedestrian walks past a Bank of America branch in New York. Photo: Craig Warga/Bloomberg via Getty Images

Bank of America, the largest lender in the Paycheck program, refuses to forgive borrowers’ loans and prevents them from receiving direct aid from the Small Business Administration, which oversees PPP programs.

Apply For Ppp With Bank Of America

One of the first forms of aid Congress offered to companies during the Covid-19 pandemic was PPP loans, which had to be repaid in full when salaries and other fixed expenses were paid. But in half a dozen email interviews with The Intercept, small entrepreneurs who received PPP loans from Bank of America described the same experience: A year or more after receiving their first loan, the answer was that the bank had set up. He received too much money at the beginning, and would let that part go and pay back the rest with interest. Jose Ramos, owner of Kin-Ce Target in Virginia, reported that none of his $67,500 PPP loan could be repaid.

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Not all business owners could determine why they were denied full amnesty; some say it has to do with whether the employer can pay the money, others say it has to do with whether the cost of health insurance is included in the application. But all claim they followed the rules as written when the promissory notes for their loans were signed and were not considered because of the many rule changes the SBA later made. United States banks reviewed their applications and approved them for original loans.

When the business owners came to ask for forgiveness, Bank of America’s online portal was flooded with a smaller amount of forgiveness, not allowing them to change or upload documents they had done, in effect for the full original to qualify. loan In a screenshot shared with The Intercept, when one business owner entered a small figure in the box titled “Requesting loan forgiveness” of the bank figure for a full PPP loan, an error message appeared and she could not continue. next to the tent Calls to the bank are invalid. Christopher Martin, owner of CT Martin Inc., received painstaking evidence that he used his $10,885 PPP loan for specific purposes. “All the receipts, all the records they sent you mean nothing to them,” he said.

In a statement, Bank of America said, “During the release process, we must follow the rules and regulations of the Small Business Administration,” pointing specifically to discrepancies in contractor payments. “This idea that people can’t just send us documents is just not true,” said William Halldin, a spokesman. The SBA declined to comment on the story.

Some small business owners have filed a forbearance application with Bank of America for a smaller amount, although they believe they will be forgiven for the entire loan. Others do not want to ask for less forgiveness than they deserve.

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Heather Sheppard refused to submit her deferment request to Bank of America because it did not upload the contract amount or any documents. PPP received a $16,933 loan, which Illinois-based dance and fitness studio, Allegro Performing Arts, received in the early months of 2020. But the bank said the maximum amount of forgiveness it can take is $6,900. I hit, then I account for the rest of the money, “He said. “Under the forms of the law, as far as the sum is. “

Sheppard says she called the bank about 80 times between May and July 2021. She initially reached out to active people who promised to send her to different teams and track their results. But she didn’t answer anything. “In August I got so frustrated that I actually stopped calling,” he said. He would temporarily open the bank door to see if the number had changed, but never. “I was immediately very depressed,” he said. “This whole experience has been extremely stressful.”

Sheppard took a second job working overnight in Amazon cells to keep her business afloat, but it took a physical toll on her. If his PPP loan is fully repaid, he said, he will finally be able to quit his job at Amazon. “What we wish is that we are tired, we are depressed, we are moved,” he said.

After many complaints about the slow and confusing forgiveness process by all lenders, the SBA established its own portal in August that allows small business owners to apply directly to the operator. But the banks had to pick the door of the SBA, and Bank of America is one of those that refused to do so. Those medium-sized companies that have received PPS loans through the bank have no option but to enter through the bank’s own door. In a statement, Bank of America said “If we were to use the SBA website …, we would be required to review each application for forgiveness and provide the recommended amount of forgiveness, just as we do on our website.”

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Amy Yassinger, the owner of a music company in Illinois who fears the impact, has asked for forgiveness through the Bank of America portal, although the bank says she will only forgive $2,436 of her $38,730 PPP loan. “Compulsion,” he said, “I submit to the inhibition of pleasure.” Pay it off now at $2,000 a month. At one point he hired a lawyer, who sent a letter to the bank claiming he violated the false claims by submitting the original documents for the loan to the SBA, but the bank refused, and the lawyer advised Yassinger to accept more. The original PPP can be the same cost loan.

The experience was so difficult that Yassinger created a support group of Bank of America customers who had the same experience. The group now has 29 members, including Yassinger, Sheppard and Ramos. All business loans are less than $100,000. “Here, with this group therapy for all of us,” Yassinger said.

Members of Yassinger’s group tried to file complaints with federal regulators — including the Office of the Treasury, the Federal Trade Commission and the Consumer Financial Protection Bureau — but they were shut down without taking action against the bank. This is how they identify the solution to their legal problems. Congress discussed automatically exempting PPP loans under $150,000 by the end of 2020, but lawmakers never did.

Meanwhile, PPP borrowers can appeal forgiveness decisions through the SBA, but that process cannot begin until the borrower submits a forgiveness application to their bank. In this case of business owners, who will receive the Bank of America acceptable number. “Anyone is free to appeal to the SBA,” Bank of America’s Halldin said.

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When Martin contacted the SBA to ask that he be able to repay $3,114.79 of his $10,885 PPP loan, he asked Bank of America to appeal the bank’s decision that he could appeal. “But Bank of America refuses to talk to me,” he said.

Martin’s business is still affected by the pandemic; He estimates that free information technology and nearly 60 percent of his customers have gone out of business. He didn’t have the money to start making the payments the bank said he owed. But because Martin lives in an economically depressed area, he was able to apply for a grant through the Financial Injured Program, also through the SBA, at the end of last year. Once he got the money, he turned around to use the balance.

“I had to save my EIDL loan to run my business,” said Martin. He covered travel expenses to meet new clients and negotiate new deals. “But I interviewed for Bank of America.”

“I wanted to help this small business person,” said Martin. “And Bank of America just decided not to honor their credit.”

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Major US banks are pouring in loan applications for the government’s emergency financing program for small businesses as Congress fills it with $320 billion in additional funding. Packages tend to go to some of the largest networks

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