The RRF scandal continues to develop with more and more uncertainty. Whereas the latest news that applicants received from the SBA was that they would not need to reapply, as the SBA will keep applications in their current status based on the date that they were submitted, other applicants have now received a different letter detailing that their award cannot be approved at all. The letter states that “the award cannot be approved due to an ineligible business type or other related reasons.” A rejection status, however, can only be attributed if applicants had also applied for the Shuttered Venue Program; but many owners recipients of the letter say they have never applied for that program, nor have they defaulted on an SBA loan, and thus should still qualify. This means that many of these owners are somehow falling into the “other reasons” category, which inherently leaves much up in the air for interpretation.
Small business owners are growing increasingly suspicious of the SBA’s actions, and feel as though it has been reluctant to be transparent ever since the three lawsuits that challenged its priority program were decided upon. Not only is the SBA giving ambiguous explanations for why businesses are not yet receiving funds or being rejected altogether, but it is now not answering at all. The SBA has yet to provide a comment on the general situation, and owners that are struggling to reach them in search of answers are met with radio silence.
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