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What happens when you file an SBA loan application, and it is denied?

What happens when you file an SBA loan application, and it is denied?
Written by Publishing Team

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

Last week, WBKO News wrote a story about a man whose businesses in the side lane were destroyed by hurricanes. He applied for an SBA loan but was denied due to his credit score.

As each case is different, “If your loan is denied, please, I urge you to read the rejection letter carefully,” says Tawheeda Mateen, a public affairs specialist with the Small Business Administration’s Disaster Assistance Office.

No two businesses are alike. No two homeowners or renters are alike, the SBA offers help to homeowners and renters too. No two businesses are alike. So we urge you to read your reconsideration letter. You have 60 days From the date of this letter to file a review, do not rush to reconsider because sometimes within 60 days, some things may change,” Mattin explained.

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

“If you are, let’s say you have a federal debt, it may send you a denial, the SBA may send you a denial letter. If you have an unacceptable credit history they may send you a denial letter. But it is very important that you go through this process because if that happens Let’s say your homeowner or tenant is denied an SBA loan, we will refer you back to FEMA, and then FEMA will provide you with additional assistance regarding the business owners,” Mateen added.

It’s important, says Mateen, that you don’t throw away the rejection letter no matter what. You must first apply with FEMA and then SBA, if you skip this step, the process stops.

“After all this information is entered, it just becomes a game of patient waiting, we process these loans as quickly as we can,” Matin asserts.

“We advise and encourage everyone to submit their application for the SBA application as soon as possible before the deadline expires.”

If you have not yet registered with FEMA, go to warsassistance.gov.

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