Lexington-Fayette

SMEs are still locked out of the COVID-19 aid program – Lexington-Fayette, Kentucky

Lexington-Fayette, Kentucky 2021-11-24 10:41:48 –

Emily Reed’s business hasn’t been that hot since the pandemic.

“It’s just very slow,” she said.

Her family owns Spagnvola Chocolatier in Maryland.

“We make our own chocolates,” Reed said. “We sell truffle bonbons. There is also a bar.”

They are trying to get a COVID-19 Federal Disaster Loan for 10 months.

“With this money from the loan, we will be able to get out of the many debts we have,” Reed said. “We will also hire staff for the next season when the demand for chocolate will be very high.”

Spagnvola is one of the companies that discovered this year that Newsy is trying to correct the government’s own mistakes withholding pandemic loans and grants from the Small and Medium Business Administration.

In the spring, Newsy discovered a new offensive fraud prevention system that incorrectly flags legitimate applications. The SBA rejected people because they didn’t pay child support when they had no children. Others have been declared dead because their employer ID matches the social security number of the person who died.

Now there is not enough time to get rid of the remaining government fools.

The SBA has terminated the coronavirus aid program, even though an undisclosed number of applicants such as Spagnvola are still fighting for funding.

The Reeds will not be able to get a disaster loan because they do not mistakenly think that the SBA has filed a tax return for 2019.

Filing the amended tax return is a known obstacle affecting companies like Spagnvola.

At a recent parliamentary hearing, SBA administrator Isabel Casillas Guzman said stores like Spagnvola should continue to put pressure on the IRS to get the documents they need. She admitted that it could take months.

“Unfortunately … processing time. We need to work closely with the IRS to make sure the document is correct,” says Guzman.

The SBA did not have a number of companies blocked by tax issues, but it is enough to warn Congress.

“We’re getting a lot of complaints in our office where people are now … I absolutely support fraud, but get things done for small businesses,” said Carolyn Bourdeaux. I want to be able to do that. ” ..

Most received the relief they requested.

The SBA provides over 4 million COVID-19 disaster loans and $ 305 billion worth of grants.

The agency does not yet reveal the number of claims in the pipeline.

Companies must apply for assistance by December 31st and appeal to a place like Spagnvola for a six-month refusal.

“Unfortunately, without this loan, we might end up having to close our store,” Reed said.

Emily Reed wants the government to succeed before it’s too late.

This story was originally published by Patrick Terpstra of Newsy.



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