Here Are Your Articles for Wednesday, May 20, 2020
Is this email not displaying correctly?
View it in your browser .
Website About Us Partners Services Resources Contact Us
Share Save

Why Didn't I Get My PPP Loan?


You may have been one of the businesses that pounced on the hastily assembled Paycheck Protection Program in hopes of getting a loan. Many businesses succeeded, but some did not, and it's not always clear why. If you didn't, here are some clues why.

Your first call should be to the lending institution. PPP loans don't come directly from the Small Business Administration or another government agency, but from banks approved to work with the SBA. There is no universal portal to track your loan or uncover reasons for delays or rejections. Your contact at your bank or your bank's own loan portal might be able to help you.

Also, here are some other items that might be holding you up, according to SmartAsset, a personal financial technology company.

Failure to document employee costs. This error is especially common with sole proprietorships. Owners should make sure they are listing actual employees and not contract workers. If you don't have any actual employees, you may still be OK — PPP loans are available for gig workers, sole proprietors and independent contractors. But you have to have your papers in order.

Franchise confusion. Franchised businesses are eligible for PPP loans but need to be in the SBA franchise directory. If you're having trouble, make sure you're on the list. If not, contact the SBA about how quickly you can get on it.

Failure to meet key qualifications. SmartAsset notes that if you were not in operation before Feb. 15, 2020, you won't be considered. Also, businesses with a 20% owner with a prior felony conviction or guilty plea will be rejected.

Excluded businesses. Certain business classes were initially excluded, such as banks, investment companies, passive real estate investment companies and speculative trading firms, according to the National Law Review. But there is some gray area here: Some registered investment advisors, for example, were initially rejected, but found on reapplication they were accepted, according to If you were rejected because your business class is excluded, you may have to have a conversation with the SBA if you believe you are in an acceptable group.


Share Save

Your Comments

Seidel Schroeder & Co
Seidel Schroeder CPA
Office: (979) 836-6131
2707 South Market Street
Brenham, TX 77833
Friend Me on Facebook
Connect with me on LinkedIn
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © IndustryNewsletters All rights reserved.

This email was sent to:

Mailing address: 2707 South Market Street, Brenham, TX 77833