What happens when you apply for an SBA loan and it’s declined?

0

BOWLING GREEN, Ky. (WBKO) – With many businesses and homes damaged and destroyed by recent tornadoes in Bowling Green, many people are now trying to pick up the pieces, rebuild and move on.

Last week, WBKO News did a story about a man whose bypass business was destroyed by tornadoes. He applied for an SBA loan but was denied due to his credit rating.

Each case is different, Tauheedah Mateen, public affairs specialist with the SBA’s Disaster Assistance Office, says, “If your loan is denied, please, I urge you, please, read your rejection letter carefully.

“No two companies are the same. No two landlords or tenants are the same, and the SBA also offers landlord and tenant assistance. No two companies are the same. We therefore urge you to read your reconsideration letter carefully. You have 60 days from the date of this letter to submit a reconsideration, don’t rush into the reconsideration because sometimes within that 60 day period some things can change,” Mateen explained.

Since each case is different, the refusal will be due to one or more specific reasons.

“If you are, say you have federal debt, it may send you a denial, the SBA may send you a denial letter. If you have an unacceptable credit history, it may send you an SBA denial letter But it’s very important that you go through this process because if this were to happen, let’s say a landlord or tenant is denied an SBA loan, we’ll refer you to FEMA, and then FEMA will give you further assistance in when it comes to business owners,” Mateen added.

Mateen says it’s important not to throw away your rejection letter no matter what. You must first apply to FEMA then SBA, if you skip this step the process stops.

“Once you have provided all of this information, it is just a patient waiting game, we process these loans as quickly as possible,” Mateen points out.

“We advise and encourage everyone to submit their application as soon as possible before the end of this deadline.”

If you are not yet registered with FEMA, go to assistancecatastrophe.gov.

Copyright 2022 WBKO. All rights reserved.

Share.

About Author

Comments are closed.