Today the SBA has issued new guidance in response to a common problem among Targeted EIDL grant and Supplement EIDL grant recipients. In many cases, applicants have been "Approved" and "Funded" only to then see an "Error" message on their portal. This in most cases is due to the users bank not accepting the SBA funds. If this has affected you, here's what you can do.
Bank Not Accepting EIDL Advance Funds
The example our SBA contact provided us today is certain banks, such as Chime, were not accepting SBA Advances.
In some cases, other banks would not accept the transfers because of mismatching information, such as SSN or EIN information did not match the bank account information, or the bank account was a personal account.
The SBA is aware of this situation and has been working on re-distributing funds that have been returned to them. Here is the SBA FAQ on Advance Funds Returned by Banks.
Action: How To Get Your EIDL Advance Funds
If this situation has happened to you, we recommend reading the FAW provided by the SBA. But in short here is the guidance from the SBA:
We are working on an update to our system that will enable us to re-disburse those funds as soon as possible. If you have not already done so, please send an email with a photo ID front and back and a check with the word “VOID” written across it. Please start the subject line of your email with your application number and send to: COVIDAdvanceBankReturns@sba.gov
More Information about EIDL Advance Funds and Timing
If you want to stay up-to-date on new SBA information, be sure to subscribe to our YouTube channel and check our app frequently for new updates.
If the SBA shares more information on EIDL Advance re-distribution timing, or general timing on Advances or EIDL Loan increases, we will be the first to let you know.
The SBA has also recommended that business owners and sole proprietors double-check to make sure their information hasn't been used without their knowledge (to apply for SBA funding). This came out of our conversation with the SBA last week when they asked if we could bring attention to potential fraud issues.
So, we've built two lookups on our website where you can:
These tools utilize publicly available data from the SBA. The data does not include recent EIDL loans or 2021 PPP loans, so you may not find your 2021 funding, but you can search your own business' 2020 funding or others. Feel free to share the tools with friends and colleagues to spread the word!
