If your lender denied a PPP loan application you have rights to review and appeal. Our experienced SBA attorneys can guide you through the process.
Book a Consultation CallSBA PPP Loan Denied
You will have filed your application for your PPP loan. Unfortunately, the lender denied your application. Importantly, the denial may mean the end of your business. It may result in the termination of employees. As such, the denial of your PPP loan application can have devastating consequences. Nevertheless, you can appeal the decision. However, you must jump through some hoops in order to successfully appeal and denied PPP loan application.
You can only have a decision by the SBA appealed to an administrative law judge. Unfortunately, you cannot appeal the decision of the lender to an administrative law judge first. Therefore, you will have to request a review of the decision first by the SBA. If the SBA, after its review, also denies your application, you can then appeal that decision to the SBA Office of Hearings and Appeals. You must request a review within 30 days.
If your review is unsuccessful, you file your appeal with the SBA's Office of Hearings and Appeals or OHA. Thereafter, the administrative law judge (ALJ) receives the case. In short, an ALJ presides over administrative hearings with the government. Keep in mind, the SBA will appoint an attorney to represent its interests in the appeal as well. As such, you should also have an experienced attorney representing your interests.
Once the SBA issues its review decision, you have limited time to file your appeal. To that end, you must file your appeal within 30 calendar days after your receipt of the final SBA loan review decision. Alternatively, you only have 30 days from your notification by the lender of the final SBA loan review decision. However, the deadline starts running from whichever notification you receive first.
In order to successfully appeal, you must prove that the SBA based its loan review decision on clear error of fact or law. Furthermore, the burden of proof rests with you. Thus, you must show the SBA's decision was in error by a preponderance of the evidence.
To meet your burden of proof, you will need to submit various documents described by SBA rules. Moreover, you will have to include a legal brief showing how the facts and law prove the SBA made an error.
Our attorneys have the experience to aggressively represent you in front of the SBA and the OHA. Contact our offices today to set up your evaluation with one of our attorneys.
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Small business and guarantors obtained an SBA COVID-EIDL loan for $1,000,000. Clients defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for collection. Treasury added nearly $500,000 in collection fees totaling $1,500,000. Clients were served with the SBA's Official 60-Day Notice and exercised the Repayment option by applying for the SBA’s Hardship Accommodation Plan. However, their application was summarily rejected by the SBA without providing any meaningful reasons. Clients hired the Firm to represent them against the SBA, Treasury and a Private Collection Agency. After securing government records through discovery, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury. During litigation and before the OHA court issued a final Decision and Order, the Firm successfully negotiated a reinstatement and recall of the loan back to the SBA, a modification of the original repayment terms, termination of Treasury's enforced collection and removal of the statutory collection fees.
Client personally guaranteed SBA 7(a) loan balance of $58,000. The client received a notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings. We represented the client at the hearing and successfully defeated the AWG Order based on several legal and equitable grounds.
Our firm successfully resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) in the original amount of $150,000 for a Florida-based borrower. The loan, issued on June 4, 2020, was secured by business assets and potential personal liability through the SBA's Security Agreement.
Following the permanent closure of the business, we guided the client through the SBA’s Business Closure Review process and prepared a comprehensive collateral analysis. We negotiated directly with the SBA, obtaining a full release of the business collateral for $2,910 — satisfying the borrower’s obligations under the Security Agreement and eliminating any further enforcement risk against the pledged assets.
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