Wisconsin Small Business Development Center Provides Updates on Loans

Wednesday, June 16th, 2021 -- 10:02 AM

The Wisconsin Small Business Development Center provided updates on available loans to help individuals recover from the coronavirus pandemic.

Over the past month many clients have contacted the SBDC about not hearing anything back from the SBA about their applications for various SBA programs including the EIDL Loans and Grants, Restaurant Revitalization Fund, Shuttered Venues Operators Grant etc.

Or, clients have stated that they contact the SBA and they were told, “their application is in process.” It appears that one major issue slowing the processing of applications is the IRS Form 4506-T, the tax return transcript request, that all federal grant applicants must file in order to be considered for grants.

The IRS must process the form and then send it to the SBA, which manually compares the tax return information with the grant application and it must match exactly.

Delays occur in the IRS processing step and in the SBA processing step because of worker shortages. According to an IRS official, “The IRS is trying to hire people to process 4506-Ts."

He stated, “There is a 30- to 60-day backlog and nothing can be done about that.” The best solution, he says, would be for the SBA to process grant awards without waiting on the IRS. So far, the SBA continues to require the information from the IRS before processing the grants.

Feel free to contact us with questions and/or comments.