Complaint: Horrible implementation of PPP loan forgiveness guidelines

on 19 June 2021 about Bank of America in category Banks

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Complaint resolved
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My complaint:

This is a formal complaint regarding the Bank of America’s (BOA) processing of our PPP loan forgiveness application. Specifically, BOA made an incorrect determination in calculating the amount of the PPP loan, which our business was eligible to receive. BOA recommended a full forgiveness of this incorrect amount to SBA without notifying us first to allow a chance to resolve the discrepancy. Furthermore, BOA failed to include in their notification email to us any instructions to request SBA’s review of the BOA’s decision (since the amount BOA submitted for approval was different from the PPP loan amount we requested and received). It is our understanding that the inclusion of those instructions was required by the SBA Procedural Notice (Control : 5000-200770).
Upon receipt of the BOA’s email notifying us that only a partial amount was submitted to SBA for review, we immediately contacted the lender and notified them that we disagreed with the amount. We went over the calculations , BOA representative acknowledged that the amount submitted to SBA was understated, and instructed us to wait for the SBA’s decision. We have not been informed of an opportunity to request SBA’s review. In fact, the representative informed us that we would be able to appeal the amount once the decision from SBA was received.
On March 15, 2021, SBA notified the lender that the PPP loan amount was fully forgiven and remitted to the bank. No appeal instructions were provided as SBA issued the decision for a full forgiveness of the submitted amount. We immediately contacted BOA again to determine the next steps for correcting the amount. To date (as of 052821), we’ve not been able to obtain a resolution of the problem. Every time we speak to the PPP Loan department within BOA, no one knows what’s going on or what the procedures are. Our calls have been “escalated” multiple times, but we have not received any assistance. Desperate for a resolution, we have been searching for information on the internet and came across the aforementioned procedural notice issued to the lenders. Based on our understanding of the notice, BOA should have provided us with written instructions to request a timely review of their decision (within 30 days of BOA’s notification). They failed to do so. When we disagreed with the amount over the phone, they provided incorrect instructions to wait for the SBA’s decision. It is due to the BOA’s continual failures, misrepresentation, and unresponsiveness, our business has not been able to get the full PPP amount allowed. We request your assistance in resolving the issue as our efforts have been futile.

Suggested solution:

We are seeking BOA to cover the difference between the amount of the PPP loan and the amount they submitted to SBA for forgiveness.

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infoneuro (@guest_4086)
8 months ago


I am in a similar situation as the one you described above. Has BOA remediated the issue?

Mike (@guest_4097)
8 months ago

I am in kind of similar situation. No one seems to be in control in BOA. I Contacted SBA, but they say it is for lender to decide on forgiveness amount. I don’t know where to appeal ??!!

Farrel (@guest_4118)
8 months ago

Maybe not the exact same situation with BofA but we applied for the PPP and BofA added without our asking for it a $10,000 EIDL loan. It was lumped in with our PPP loan so we used it for payroll and now BofA says we have to pay that back. I feel like we got duped into using the funds for payroll, thinking if we followed all the requirements we would get forgiveness.

Dale E Iarossi
Dale E Iarossi (@guest_5076)
1 month ago
Reply to  Farrel

Same thing happened to me. They refuse to listen whenever I call and and they keep denying me the option to re-apply

RMA (@guest_4125)
7 months ago

I am in the same situation. BOA received the funds for the PPP, approved the PPP loan amount, provided the PPP to me, a small business owner, and now they say I am only eligible for forgiveness of a portion of the loan. My accountant has advised me to file a complaint immediately, but I don’t know to whom I direct that complaint to. I’d also add that every small business owner in the same field that I am aware of has already been given full forgiveness with zero questions asked, but they’ve gone through different lenders. I made the… Read more »

community bank
community bank (@guest_4893)
3 months ago

Hello, I’ve worked for the big banks and now for a local community bank in AZ. I can tell you there is a huge difference of customer service. The large banks have so many different departments and information is passed on to other people you can’t see or talk too so it’s very hard to get a straight answer when there is an issue. A community bank you work with the same smaller team of people who address your lending and servicing concerns. You can even walk in and see my face if you want too. My suggestion would be… Read more »

Seabass (@guest_4955)
2 months ago

BOA did the same to me received $37k and they sent the SBA an amount to forgive $5k. Which the SBA did forgive the $5k. They dont take into account if you are the owner of the business and take a draw for compensation and only looked at the minimal amount of a salary I paid myself which was $24k a year. BOA in my opinion needs to eat the rest or allow us small businesses to use all of our income and not a W2.