The scandalous PPP loans were seen as the crème de la crème for microbusinesses struggling to survive and thrive through the Coronavirus.
Many business owners have applied, but only a handful acquired PPP loans. The first round of relief funding worth 349 billion dollars maxed out in a matter of months. However, the SBA topped up the funds in April with an extra 310 billion dollars to be disbursed via banks and web-based lenders.
But these loans shouldn’t be a big deal because even round two won’t last long. So what next if you are among the many who got rejected for one reason or another? We’ll get to that in a few.
Possible Reasons Your PPP loan Request was Rejected.
Before searching elsewhere, let’s try to understand why your PPP application was rejected;
- Simple application errors like missing a number or two on your EIN
- You failed to meet the terms of a specific lender. e.g., you don’t have a relationship with them; your requested amount was below their preferred cap (Try to call your lender for an explanation).
- You applied with multiple businesses
- You provided false data, such as per-month payroll amount, number of workers, etc.