Pennsylvania business owner is forced to repay PPP loan because bank has expanded too much

0

A WPIX-TV report found that a small business in Pennsylvania is forced to repay part of the PPP loan it received from PNC Bank after it was canceled. According to WPIX-TV, Clean Day Housekeeping’s PPP loan has been canceled by the bank. However, the owners were told that the PNC Bank had spread too far, which prompted the bank’s action to recover the money.



Obliged to pay part of canceled PPP loan

Jessie Belonzie, co-owner of Clean Day Housekeeping, told WPIX-TV that she was “stunned. Just completely stunned. And that’s understandable, because his business will now have to repay part of the $ 31,500.

Belonzie told WPIX-TV, “If you take out a loan for your house, they don’t come back a year later and say we’ve changed our minds on how it’s going to be paid off.”

The only explanation the owners have received from the bank so far is, “The money was given to the banks, and they may have given too many funds or pledged funds to companies like ours. And now they’re trying to get it back.

This case is particularly worrying as millions of small businesses have had their PPP loans canceled. And while many of these small businesses are still struggling to come out of the crisis brought on by the pandemic, the last thing they need is a bank telling them they have to pay back some of the amounts on the canceled loans.

PPP loan remission

According to the lender submission metrics of the SBA’s September Forgiveness Platform, 6,739,872 or 59% of businesses submitted forgiveness requests. And to date, 6,495,213 or 56% of them have been totally or partially forgiven.

The good news is that the vast majority of companies have applied for PPP 2020 loans. However, millions more have yet to ask for forgiveness in 2021. The SBA’s September report indicates that around 5 million companies did not apply for a pardon.

If you have received PPP loans for your small business, be sure to ask for a rebate. If you followed the rules of the loan, you can have all or part of the loan canceled. Visit the SBA Direct Forgiveness website to make your submission.

Image: Depositphotos


Share.

About Author

Leave A Reply