What Happens When You Apply For An SBA Loan And It Is Denied?
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 made a story about a man whose business on the ring road was destroyed by tornadoes. He applied for an SBA loan but was turned down due to his credit rating.
Each case is different, Tauheedah Mateen, public affairs specialist with the SBA’s Disaster Assistance Office, said, “If your loan is denied, please, I urge you to read your denial letter carefully. “
“No two companies are the same. No two owners or tenants are the same, the SBA also offers assistance to owners and tenants. No two companies are the same. We therefore ask you to read your letter of reconsideration. You have 60 days from the date of this letter to submit a review, don’t rush for a review because sometimes in those 60 days some things can change, ”explained Mateen.
Since each case is different, the refusal will be due to one or more specific reasons.
“If you are, let’s say you have federal debt, it can send you a denial, the SBA can send you a denial letter. If you have an unacceptable credit history, you can send a denial letter from the SBA. But it is very important that you go through this process because if it were to happen, say a landlord or tenant is denied an SBA loan, we will refer you to FEMA and then FEMA will offer you further assistance regarding proprietary business, ”added Mateen.
Mateen says it’s important not to throw away your rejection letter no matter what. You need to apply to FEMA first and then SBA, if you skip this step the process will stop.
“Once you’ve entered all of this information, it’s just a game of patient waiting, we’re processing these loans as quickly as possible,” Mateen points out.
“We advise and encourage everyone to apply to the SBA as soon as possible before this deadline expires. “
If you haven’t yet registered with FEMA, go to Disasterassistance.gov.
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