What happens when you file an SBA loan application, and it is denied?
BOWLING GREEN, Ky. (WBKO) - With many businesses and homes damaged and destroyed by the recent tornadoes in Bowling Green many people are now left trying to pick up the pieces, rebuild and move on.
Last week, WBKO News did a story about a man whose business on the bypass was destroyed by the tornadoes. He applied for an SBA loan but was denied due to his credit score.
With every case being different, Tauheedah Mateen the Public Affairs Specialist with the office of disaster assistance at the SBA says “if your loan is denied, please, I urge you please, to read your denial letter carefully.”
“There are no two businesses alike. There are no two homeowners or renters alike, which SBA offers homeowners and renters assistance as well. There are no two businesses alike. So we urge you to please read your reconsideration letter. You have 60 days from the date of that letter to submit a reconsideration, don’t rush to reconsideration because sometimes within that 60 days, some things may change,” explained Mateen.
Since every case is different, the denial will be due to a specific reason or reasons.
“If you are, let’s say you have federal debt, that may send you a denial, SBA may send you a denial letter. If you have an unacceptable credit history that may send you an SBA denial letter. But it is very important that you go through that process because if that were to happen, let’s say a homeowner or renter was denied an SBA loan, we will refer you back to FEMA, and then FEMA will offer you additional assistance as far as business owners,” added Mateen.
Mateen says it is important to not throw away your denial letter no matter what. You have to first apply with FEMA then SBA, if you skip that step the process stops.
“After you put in all that information is just a being patient waiting game, we are processing these loans as fast as possible,” stresses Mateen.
“We advise and encourage everyone to submit their application their SBA application as soon as possible before that deadline runs out.”
If you have yet to register for FEMA go to disasterassistance.gov.
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