I applied for a PPP loan through PayPal since my bank Citibank had no means of applying for a PPP loan and other banks wouldn't take the applications if you didn't have an account with them before 2/15/20. I sent all of the information for my wife as an independent contractor including Schedule C and 1099's. We got an email indicating that we were rejected by WebBank (not SBA) for credit reasons. WebBank is NOT supposed to be determining if applicants for the PPP are eligible for a loan. Their only task for the SBA is to determine the completeness of the application material and maybe to see if the amount applied for is in keeping with their guidelines. There is no reason to look up our credit score (which btw was 805!!) and turn us down. The purpose of the PPP is to help small businesses who are NOT eligible for other loans during this time of crisis to keep them afloat. For independent contractors, these "loans" were never going to be paid back anyway since they are still going to be employed on June 30, thus satisfying the condition for not having to pay the loan back. What then is the reason for a credit check and denial based on credit? This makes no sense and PayPal should have WebBank reconsider this misuse of the Program.
