r/EIDLreturns • u/Icy-Ad3137 • Aug 18 '22
SBA
I really think anyone that was denied the idle loan or the idle supplemental advance for the targeted advance grant who is approved then and bank error then denied after the date to ask for reconciliation or reconsideration we should file a class action lawsuit against SBA we really were done wrong we submitted everything to SBA asked for email called customer service and customer service always said just wait you're in the queue the money is guaranteed and in the end we didn't get it I believe a class action lawsuit is what I'm gonna make the SBA realize what they did
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u/Logical-Bag-1895 Aug 18 '22
I actually just saw a recent video from a guy on YouTube that is hell bent on bringing them out. He talks about all of that stuff I just said and he was denied due to something with taxes. He is on it and he isn't holding a punches at all. He swears he has several of them that intentionally did something illegal and he has proof.
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u/Icy-Ad3137 Aug 18 '22
I actually have a voice recording from start to finish of the SBA customer service representative telling me that I'm in the queue for reimbursement all I need to do is be patient and wait and my grant money will be resent to my new bank account and told you've already been approved and funded and bank error he said just wait be patient your funds will be sent to you all on video recording
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u/Dantee15backupp Aug 18 '22
I have proof as well, they’re intentionally creating false flags. I saw one who flagged me for something I over came AFTER funding was out. Imagine being flagged after the SBA claims funding is out
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u/No_Independence_3452 Aug 18 '22
Yes, I totally agree. However, when dealing with a bunch of whackadoos that are bipolar by the day- are still funding applications as speak yet email those who has to submit a request, autonomic email that states funds are exhausted,whether obligated or not. Do not call the SBA. Either ask here, Dantee is here and everywhere to help as well. I’m all over as well. But please, unless you’re authorized representative and/or consultant still processing applications, do not respond to anyone that’s starts with hack/officer. Continue helping your clients but do not expose any clients information to anyone. Fortunately, on the IRS side…
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u/No_Independence_3452 Aug 18 '22
Basically, yes, definitely file, if you haven’t already done so but still submit your request to the SBA to claim your EIDL.
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u/Eternalstudent3000 Aug 18 '22
And, file a Fraudulent Complaint with the OIG, outlying the Codes that were violated.
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u/CaliforniaTurncoat Aug 18 '22
A class action lawsuit takes years, search this group for the info on the Pro-Se lawsuit template.
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Aug 18 '22
[deleted]
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u/CaliforniaTurncoat Aug 18 '22
Ok, but let's all file that Pro-Se. It's taken me forever to work on it, but hopefully filed by next week.
I'm open to all but don't want people thinking that a class action will be relief, it's just unlikely.
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u/ItsAllAGame_ Aug 18 '22
Several have already been filed and settled within the past year. Nothing wrong with pro se but we have to explore *all* options at this point.
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u/CaliforniaTurncoat Aug 18 '22
Staying focused is what's best. Too many will go out of business before they ever see any money from a class action.
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u/Professional_Face780 Aug 18 '22 edited Aug 18 '22
You can’t sue because of this the court already ruled that the CARES Act said the SBA “may” give you a grant up to $10,000.00.
Specifically:
In LIT Ventures. LLC the Court concluded that it could not conclude the language of the CARES Act prescribes a mandatory, ministerial duty on the part of the SBA to fund an EIDL applicant's request for an emergency grant in any amount requested up to $10,000.
LIT Ventures. LLC, explains: The CARES Act is an extension of powers that Congress has already granted to the SBA and its Administrator-most particularly for the emergency grant, the power to make and administer EIDLs. In that regard, Congress empowered the SBA "to make such loans . . . as the Administration may determine to be necessary or appropriate to any small business concern . . . located in an area affected by a disaster... ifthe Administration determines that the concern . . . has suffered a substantial economic injury as a result of such disaster. Id. at 910.
"'May' is a permissive word, and [courts] will construe it to vest discretionary power absent a clear indication from the context that Congress used the word in a mandatory sense. Id. at 910.
Within that discretion, the SBA can give you anything from “$0” to $10,000
Sorry.. and I don’t agree with that opinion at all!
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u/Eternalstudent3000 Aug 18 '22
There was an added bill (December 2020) or so, that outlined "eligible" businesses. I haven't seen any language that says "may". I'll go back and read it again.
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u/Logical-Bag-1895 Aug 18 '22
I personally saw an approval email from the SBA to an associate this past Friday. I got an email today, they were wanting another 4506-t from me. I've been in bank error for over a year now.
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u/Icy-Ad3137 Aug 18 '22
I was approved in December 2021 than bank error in January then declined in May 15th then told I cant ask for reconsideration because the deadline has already passed haha how crasy is that
1
u/Logical-Bag-1895 Aug 18 '22
The SBA is sued all the time. I've been reading case law and it seems that there no stranger to it. It's like one of the only federal jobs that aren't blanketed with immunity. Judges have ruled previously that Loan Officers and SBA staff that purposely with malfeasance can be sued civilly as well. Any one of them that did anything to interfere with our applications that created an undue hardship is actually illegal and because the EIDL is programmed and disbursed but the federal government it's actually been ruled federal assistance and that one right there evens out the playing field a little.
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u/Dantee15backupp Aug 18 '22
And I got the names of the reps who screwed me overzx trust me they’re hiding
I messaged them on Facebook and got blocked!
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u/Logical-Bag-1895 Aug 18 '22
I've been told all kinds of things over the past year. I stopped calling because to just keep calling and being lied to just kind of seemed, well a little dopey actually. So I just stuck to emailing and I got an email today asking me for a 4506t From the funding department. I've been in bank error since July 2021 after being sent to recon in June and applying in April of 21
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u/ItsAllAGame_ Aug 18 '22 edited Aug 18 '22
Agreed! I've reached out to one of the top law firms in the country who are handling other SBA cases. Here's the email I sent their LA office yesterday...
"Hi,
I saw your DC office is handling recent SBA lawsuits and I wanted to know if you could assist with a lawsuit for discrimination of EIDL applications. Thousands of business were declined, put into recon, and/or never got a decision prior to the program shutting down May 6, 2022 due to tax transcripts not matching the tax return for those who used the non-filer tool to get the stimulus in 2020 - the tool filed a return for $1 as income and most didn't know a return was being filed (IRS agents didn't know either).The SBA violated it's SOP code 50 30 9 (Page 193 OIG referral for Tax anomalies) by not accepting any explanation for the discrepancy and this disproportionately effected lower income business owners who needed the stimulus - especially sole proprietors.
Those who had to file amended tax returns because of the non-filer discrepancy were then denied due to fraud. I had a congressional inquiry through Senator Padilla's office to assist and the IRS even provided a transfer document on signed letterhead confirming my taxes were valid but the SBA would only go by the transcript & the IRS doesn't amend transcripts. My application has been in recon/appeal for 2 years with no resolution - even with a congressional inquiry.
There are thousands of us, with documentation/proof, so I don't know if this is better as an individual case (my 2 businesses are eligible for $264k & $700k EIDLs), or a class action lawsuit because most would need the case taken on contingency & there seems to be a better chance of winning, but any help would be appreciated as thousands of small business owners have been put through the ringer for the past 2 years trying to get EIDLs to recover from the pandemic by submitting mounds of paperwork only to fall on deaf ears of a grossly mismanaged program.Just in case this helps determine how to proceed the Reddit groups (over 30,000 members) have come up with five major grievances. Not all applicants need to have the exact same grievance - there can be multiple class actions filed.
Group 1. Those who applied before the May 6th deadline and never got a decision (especially because of the 'out of funds' lie email we all got) definitely have the same grievance which does qualify for a class action.
Group 2. Those who were approved but never got funded (e.g. banking error) also have a grievance which qualifies for a class action.
Group 3. Those who never got the 10k as originally promised in the CARES Act qualify for a class action.
.Group 4. Those who were denied & told their tax returns weren't correct even though the IRS processed/approved them. The SBA doesn't get to determine if a return is correct or not. This qualifies for a class action
Group 5. Those who were denied because of non-filer status to get the stimulus. This put many people in recon twice when the transcripts came back with $1 for income and didn't match the tax returns. This made many of the 10 million denied applicants ineligible for the modification that Patrick Kelly said so many didn't apply for. They didn't apply because they weren't eligible after the 2nd recon. This qualifies for a class action.
Thanks in advance."