Dana Glosson and her husband, Tony, earned about $ 170,000 a year before the pandemic from their Georgetown materials transportation company Glosson Enterprises. But in May 2020, Tony contracted the virus and spent several months in the hospital. He died three months later.
“It seemed to me that one after another, and I just can not rise above the water, even to overcome one loss and move on to the next,” – said Dana.
Tony has always been a driver and Dana has always been an accountant. Now that she is alone, 57-year-old Dana has created a new business plan to buy a modified van so she can be a medical transporter. She applied for a low interest loan of $ 218,000 under the US Small Business Administration’s Emergency Health Loans Program, which was created to support small businesses and nonprofits experiencing loss of income from -for COVID.
Almost a year after her husband’s death, she was denied a loan. She started a remote customer service job last week to help her survive.
“Our government is sad because they passed the law to have the money there, and why can’t they give it to people like me who have drive and a business plan?” she said.
Glosson is far from alone. In July, there was a massive wave of abandonment of the EIDL program using generic wording, disappointing many business owners. They were told they could reapply but were not told what needed to be corrected on their application.
Veronica Pugin, senior advisor to the SBA’s Capital Access Office in charge of EIDL applications, said the loans were rejected for a variety of reasons, including non-compliance with credit rating requirements or application errors. She said the agency is working to provide candidates with more details in future rejection emails.
“We’ve noticed that a lot of job seekers are looking for a more detailed explanation than the broader category of unverifiable information, so we’re going to refine that,” she said.
The SBA has “a lot” of funds remaining in the EIDL program, and business owners with 500 or fewer employees can apply by December 31, Pugin said. According to SBA…
June and July main complaint Regarding the program, the applications were not processed quickly enough – given that these are “emergency” funds for businesses in dire straits. Since then, the SBA has hired more staff and expanded training across the board, Pugin said.
The agency has gone from processing fewer than 2,000 applications on June 28th to over 37,000 applications on July 28th.
“If you accelerate this process, you will see that the number of approvals and rejections will increase,” she said.
EIDL loans, approved nationwide, reached $ 3.8 million, totaling $ 258.5 billion on Aug.19, the last time. data has been updated… This includes 326,330 loans approved in Texas, totaling $ 22.2 billion. The SBA did not know how many loans were denied.
Connecticut consultant Trevor Curran called the massive wave of loan refusals “an absolute shame” as the SBA seemed to be sweeping a bunch of files into the trash can when it switched its internal office tasked with reviewing new applications.
The SBA should have allowed the new team to review applications, not reject them, said Curran, who runs Aurora Consulting with partner Linda Rae. They help business owners apply for EIDL loans, charging up to $ 2,500 each.
The reasons given – “unverifiable information” or “unjustified economic damage” – “are meaningless and make applicants feel ashamed and scratch their heads,” Curran said. In one case, an application he filed for a client was rejected due to “inaction and lack of interest on the part of the applicant,” although he said he responded to all SBA inquiries within a few hours.
The SBA touted program improvements, but Curran said they were “minimal at best.” According to him, there was a day at the end of August when the SBA portal was unavailable. A slight increase in the speed of response to requests. But there are still backups of loan requests and renegotiations that languish in the SBA’s processing systems, Curran said.
By all accounts, the original EIDL apps in 2020 were a breeze. But filing for an increase in 2021 was a nightmare as the SBA demanded detailed supporting documents this time around.
According to Pugin, the SBA has made speeding up the processing of applications a “high priority.” This is why he has had a big hiring spike, even hiring employees from other SBA COVID-19 programs that are close to completion, such as the Restaurant Revitalization Program and the Payroll Protection Program. The new team wants to provide more accurate information on how job seekers can ensure they get the best possible bid the first time, she said.
Bill Carr, owner of Dallas Millwork, has announced his loan request. he was denied due to inconsistencies in addresses that he had tried to warn the SBA about in advance. Agency officials told him it would be rejected for non-compliance, but there was nothing they could do to help him fix it. He will just need to wait for the refusal, and then re-apply.
“It wasn’t heard,” he said. “It’s like watching a train wreck in slow motion.”
Carr, 51, said his original EIDL loan was $ 109,000 and he was eligible for an additional $ 324,000. Aurora Consulting took over and resubmitted the application. Now he is back to waiting.
“Now the SBA has tightened its belt so tight that if you don’t put a cross on the“ T ”in the address, they will refuse you,” he said. “I’m going to stop working because of the wrong zip code.”
Carr took out a loan from the SBA to buy the business five months before the coronavirus. This means that the SBA requires the repayment of these loans while holding its EIDL increase application at a time when it is unable to obtain materials or staff to conduct business. Material prices have gone up 50%, he said, and he doesn’t even pay himself the hourly rate that his workers now want.…
When he bought the business, he was generating about $ 1 million in revenue a year. Revenue dropped to $ 200,000 last year. Its staff was reduced from 14 to three people. He had to invest in equipment to automate the process in order to reduce production time and personnel costs.
He saved up his personal loan to stay in business, but he estimates he has less than two months left. He is considering bankruptcy if his new EIDL loan is not approved.
“Right now, it’s going hand in hand,” said Carr, who was hospitalized earlier this year due to stress. “I don’t have enough capital reserves to last much longer. It’s like the American dream flushed down the toilet. “