Prior to the outbreak, Dana Glosson and her husband, Tony, received $ 170,000 a year from Georgetown Materials from Georgetown Enterprises. But in May 2020, Tony contracted the virus and spent months in hospital. He died three months later.

“I feel like one thing and I can’t get my head above water to go through a loss to win the next one,” says Dana.

Tony was always the driver, and Dana was the bookkeeper. Now on her own, 57-year-old Dana has come up with a new business plan to buy a modified van for medical transport. She applied for a low-interest loan of $ 218,000 from the U.S. Small Business Disaster Risk Loan Scheme, which was created to boost small businesses and nonprofit-related businesses.

About a year after her husband’s death, her loan application was rejected. Last week she started a long-distance customer service to help her survive.

There is sadness in our government that they have legislated to keep the money there, and why can’t they give it to people like me who have a drive and a business plan? She said.

Glosson is far from alone. Massive failures were sent to the EDL program in July, much to the dismay of many business owners. They were told they could apply again, but they were not told what to do in their application.

Veronica ug Guin, senior consultant with the SBA Capital Access Office, which oversees EIDL applications, said loans have been rejected for a variety of reasons, including failure to meet credit requirements or errors in applications. He said the agency is working to provide more details to applicants in future emails.

“We have noticed a number of applicants who need more detailed information on the non-disclosure category, so we will improve,” he said.

SBA has “a lot” of money left over in the EIDL program, and business owners with 500 or fewer employees can apply by December 31, he said. Small businesses employ 99.9% of U.S. businesses and 47.1% of U.S. employees, SBS said.

In June and July, the main complaint about the program is that applications are not being processed quickly – these are “emergency” funds for struggling businesses. The SBA has since hired more staff and increased training on the board, he said.

The agency received less than 2,000 applications per day on June 28 and more than 37,000 applications per day on July 28.

“The faster this process, the higher the approval and reduction rate,” she said.

EEDL loans nationwide approved 3.8 million US dollars, totaling $ 258.5 billion, on August 19, the last time the data was updated. That includes 326,330 loans approved in Texas, totaling $ 22.2 billion. The SBA did not know how many loans it had received.

Credit officers Trever Koran and Linda Ray have had their financial experience with Aurora Consulting initially destroyed by COVID. Quickly act as an advisor to other business owners who want to apply for EIDL loans.

Connecticut consultant Trevor Curane called the storm of “massive disgrace” a wave, as the SBA appeared to have moved many files to the trash when it moved its internal office to review new applications.

The SBA should have allowed the new team to review the applications rather than reduce them, according to Pride, who runs Aurora Consulting with partner Linda Ray. They help business owners apply for EIDL loans for up to $ 2,500 each.

The reasons given – “unsubstantiated information” or “unproven economic damage” – “make sense and make applicants scratch their heads,” Koran said. In one case, the application for each client was rejected due to “inactivity and lack of interest from the applicant,” although he responded within each SBA request within hours.

SBA said improvements to the program, but Koran said those were “excellent.” At the end of August, he said, there was a day when the SBA portal could not be reached. There has been a slight increase in responsiveness to questions. However, he said there is still room for “weakening” loan and reconsideration requirements in SBA processing systems.

The general consensus is that the first EIDL applications in 2020 will be windy. However, it is expected to apply for an increase in 2021, and SBA will need detailed supporting documents at this time.

It has made the process of setting up PBA applications a “big priority”. That’s why he hired even more employees of other COVID-19 SBA programs near the end of the program, such as the restaurant stimulus program and payroll protection program. He said the new group wants to provide better information on how applicants can get the most accurate application possible for the first time.

Bill Carr, owner of Dallas Milwark, said he had applied for a loan An attempt to warn the SBA in advance was blocked due to an inconsistency of addresses. Agency officials told him that he would be fired because of the inconsistency, but nothing could be done to correct him. He just wants to wait until he is rejected and then apply again.

“He fell on deaf ears,” he said. It’s like looking at a train in a slow motion.

Rexasan Tea co-founders and veterans Terrence Campus (left) and Brandon Friedman need to know how to qualify for an SBA loan based on their experience in the federal bureaucracy.  But like many businesses, they have been waiting three months for a life-changing loan.

Car, 51, had an initial EDL loan of $ 109,000, and he is eligible for an additional $ 324,000. Aurora Consulting took over and re-applied. It is now back to normal.

“Now the SBA has tightened the belt so they will deny you if you don’t have a T in the address letter,” he said. I’m going out of business because of the wrong zip code. ”

Five months before Car Covie hit, he borrowed from the SBA to buy the business. That means S.B. / When he or she is unable to obtain the materials or personnel to conduct the business, he or she is applying for an EDL increase and applying for those loans. The cost of materials has increased by 50%, he himself does not pay even at the time the workers want.

He made $ 1 million a year when he bought the business. Last year, his income dropped to $ 200,000. The workforce has been reduced from 14 to three. He had to invest in equipment to automate the process to reduce production time and labor costs.

He has completed his personal credit to stay in business but expects it to be less than two months away. The new EDL loan is being considered as an alternative to unauthorized losses.

Carr, who was hospitalized earlier this year due to anxiety, says he is now in a coma. “I don’t have the capital to stay longer. It’s like an American dream flushing the toilet. ”