Consumer complaint received 2021-05-09 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: JPMORGAN CHASE & CO.
State: CO

Complaint narrative:
Hello, I am writing this complaint in regards to JPMorgan Chase Bank. I am a small business owner and sole proprietor in the state of Colorado. I first received my real estate license in XXXX of XXXX and I have been in the business since. I also started a commercial cleaning business that coincides with my real estate business in the spring of XXXX. 

I applied for a PPP loan on XX/XX/XXXX, through XXXX. In order to receive this loan, it was necessary to prove I not only owned the business, but I owned it before the start of COVID-19. I provided all necessary documentation needed by the SBA that proved the legitimacy of my business as well as my status as the owner of said business ( all stated documents are also attached with this complaint ). I qualified to receive the loan in the amount of {$11000.00}. 

All banking for my business is done through a personal checking account at a local credit union, XXXX XXXX XXXX XXXX, located in Colorado XXXX attachments will show ownership of the account prior to XX/XX/XXXX ). It is known that XXXX has issues funding local credit unions. Because of this, my only option was to open a bank account at one of the most prominent banks in America, XXXX Bank. I was able to successfully sign up for a personal checking account and was excited to receive the funds that were legitimized through the SBA. 

The funds were deposited into my personal checking account at Chase Bank. I then began the distribution of these funds according to the SBA laws and rules stated by the IRS for PPP loans. To help my real estate business, these funds were needed on XX/XX/XXXX, the date Chase said they were going to transfer them to my account at XXXX XXXX XXXX XXXX. 

I anxiously awaited the transfer to be deposited, but when I checked my XXXX  account on XX/XX/XXXX, the funds were not there. I then attempted to sign in to my Chase account to see if there was anything stopping the transfer of the funds. I was completely unable to sign in to my account. I was told to contact Chase Bank to unlock my account. After waiting on the phone for more than two hours  in total and many phone calls later, I was informed that my account was going to be closed in 10 days due to suspicious activity. I was shocked to hear this since I had no issue receiving the loan from the SBA, and it had already been proven that I was the legitimate business owner. 

The Chase Bank representative stated that in order to receive PPP loan funds, a business account was required rather than a personal account. I was NOT notified of this when creating my account with Chase Bank. This also was not something I had even considered since it is not required as a sole proprietor in the state of Colorado to operate under a business account. 

The representative also told me that the only step to unlock the account and receive my funds was to provide an EIN verification letter from the IRS prior to XX/XX/XXXX. This was the ONLY document they would take for proof of ownership and, thus, unfreeze the account. This is where the issue begins. I explained the following to multiple people at Chase Bank : In the state of Colorado, a sole proprietor without employees is not required to register with the state and receive an EIN because they can use their social security number to report taxes which is what I have done for the past FIVE years. Their requirement ( to provide an EIN prior to XX/XX/XXXX XXXX is impossible to fulfill since I would need to register now for an EIN which of course would not be dated prior to XX/XX/XXXX. I pleaded with multiple employees and supervisors that I could provide any other documentation ( i.e. : tax returns, bank statements from my XXXX account, real estate license, etc. ) but was told multiple times that MY account with MY money was going to be closed in 10 days and all funds would be lost in 2 years if I couldn't provide the impossible EIN verification letter. 

I completely understand that there are many fraudulent people taking advantage of government assistance being provided during the pandemic. Because of this, I have no problem providing evidence demonstrating my ownership of my business before the start of COVID-19. However, being asked to provide something that is not required by my state law to operate a sole proprietorship should NOT be the only document that can reopen a Chase account and is frankly ridiculous. I, and as many other people have experienced with Chase Bank, am being punished for following all state regulations. This is causing our businesses to suffer. 

Chase Bank is well aware of this issue and has not remedied it even after many other complaints. Please refer to the attached documents as proof of ownership, and I hope this issue can be resolved.

Company response to consumer: Closed with explanation