My SBA Loan App Was Rejected Because I filed Schedule C!
by GoBetterTogether, Window Shopper
- Created: February 5, 2012, 12:46 pm
I have been working on a new company which is internet based, with a sound competetor profile and a niche need industry.I have done everything necessary to apply, and thought, be approved for a loan for a startup.The business plan and financials are all in order, and I am seeking a loan to get it off the ground. I contacted a local bank, who referred me to their "SBA Expert". Apparently they outsource this process. Maybe its not something they are interested in.After a tedious process of file and doc prep, they returned with an answer of, " You dont qualify because you have filed Schedule c on your taxes" !!!What!? Isnt it my right by tax law to deduct the expenses over the past several years to get the development of the technololgy done?I have invested well over 100K in devloping something pretty extraordinary. I have used my own payroll and savings to do so. This approach has given me a net loss over these years of development as I could not launch until product was complete. That day ahs arrived.It seems out of line with the concept of what the SBA is for. Why should I be disqualified because I applied my losses for R&D?Anyone have any feedback as to if this just might be the banker, or are there actually stipulation within the SBA app process that says this is not allowed? Thanks
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