We have received feedback that banks are denying PPP loans because the financial documents are not signed properly.  You need to sign and date the first page of each document, and initial all subsequent pages.  This applies to 941 forms, 940 forms, P&Ls, and many other forms.

This gets a little tedious, and the SBA has issued some specific guidance.  Even though many lenders provide a means to E-sign the documents, you should still sign them as indicated above.

If you are denied, then the best option seems to be to apply through another lender.  We are not aware that any lenders have a reconsideration processes in place.  Some banks will allow you to withdraw the application in order to remedy, or “fix” the errors in the document submission.

One bank told us that the SBA is setting aside PPP 2.0 funds for loans that were funded in round 1.  This leads us to believe that round 1 recipients will have a higher probability of being funded as the funds begin to diminish.

PPP Loans Getting Denied

by | May 11, 2021 | PPP | 0 comments