Consumer complaint received 2021-12-10
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: FL
Product: Debt collection
Sub-product: Other debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
I am XXXX of a small XXXX XXXX XXXX Florida and XXXX out on behalf of our company and many other small businesses around the country who received PPP loans under {$150000.00} from Bank of America and are now blocked by BoA from applying for full forgiveness. 

National Scandal BoA is making decisions that are not in line with SBA rules and apparently no one is holding them accountable. Its a national scandal that has been surfacing in the media around the country and I suspect a lot more will surface in the next month. 

Request My request is that you help us raise awareness that BoA needs to be held accountable immediately to do the right thing. They were given 5 % by the government to disburse and manage PPP loans under {$150000.00} ; not to block them from applying for full forgiveness. 

Whats unique about BOA When SBA established a portal for direct forgiveness applications for such PPP loans, BOA decided not to participate. Now, BOA is applying its own set of rules, which is often not in alignment with the SBA rules and intentions. While each business situation may be different, we are all affected by BoA blocking us from applying for full loan forgiveness with the SBA. 

My Situation Our accountant provided all the documentation required for the first PPP loan and we were fully approved for the eligible salaries and health insurance expenses. When it was time to apply for forgiveness, BoA removed the health insurance expense on the online forgiveness application, reducing the loan forgiveness by $ XXXX, claiming that the rules had changed and we are not eligible anymore. They are quoting a paragraph repeatedly, which we believe is being misinterpreted in the Banks favor. 

We confirmed our position by consulting various CPAs, PPP experts and other XXXX business owners regarding our loan. And the conclusion is unanimous. BoA is wrong. According to SBA rules our loan should be entirely forgiven. 

Irony 1 ) The irony is that our business would qualify for the full loan amount based on salaries alone, but we can not fill out the application correctly because the BoA online application cant be edited and forces us to agree to the incorrect loan amount.

2 ) The second loan which was done exactly the same ( but reviewed by a different BOA representative ) went through and is now being reviewed by the SBA. 


Honest mistakes or Lender Fraud BoA is making its decisions apparently without oversight and turning many PPP loans or portions of it ( even though they were used for eligible expenses ) into loan collections. It appears that BoA is profiting from those small business loans people used to pay their employees and 1099s during the pandemic. This practice is putting BoA small business customers at a disadvantage and in some cases out of business. Additionally, I have been told by several business owners that their loans are showing as forgiven in the SBA records while BOA is actively sending collection letters. Thats another breakdown I cant explain and should be investigated. 

Actions 1 ) BoA - We have raised, elevated, filed complaints with BoA and every call we received ended with the same frustration. Now, the BoA considers our case closed without the SBA even knowing.

2 ) We filed a complaint with SBAXXXX XXXX XXXX XXXX XXXX  and left a review on consumer affairs. 
3 ) We joined a group of business owners who are determined to get this resolved 4 ) We have reached out to XXXX XXXX office as well and hope to get his support. 

Moving forward At this time, we have no way to appeal the Banks decision and have to accept the incorrect loan amount hoping that we may be able to appeal retroactively with the SBA. 

We need your help to raise awareness so that : 1. Other affected businesses owners can see that they are not alone and join our efforts 2. We get access to the SBA direct loan forgiveness portal 3. Bank of America is held accountable to stop turning eligible PPP grants into loans they can profit from.

4. Generate other ideas to get this resolved for every affected small business in this country.

5. And leave a record about what has happened to us.

thank you.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation