The SBA is ending a fraudulent loan program for the EIDL pandemic that lied to ZENNIE62MEDIA, INC.
On Saturday, May 7, 2022, the AKA SBA Small Business Administration sent an email that reads:
Dear COVID EIDL borrower!
ALL RELATED TERMS OF EIDL ON COVID-19 HAVE BEEN DONE
You are receiving this notification as a notification that we are unable to continue processing your application due to lack of funding for the COVID-19 EIDL loan program. The SBA no longer processes requests for loan increases in connection with COVID-19 EIDL or requests for reconsideration of previously rejected loan applications under this program.
We recognize that this has been a difficult time for your business and for the nation. The SBA has local offices in your community that can direct you to resources that can help your business in other ways. For more information on these services, please visit www.sba.gov/local-assistance to find the email address and telephone number for the nearest SBA district office and / or SBA resource partner. Please call or email for a virtual meeting.
ALL COVID EIDL CRITICISTS – DOWNLOAD CRISIS DOCUMENTS UNTIL MAY 16
Your access to the RAPID COVID EIDL portal ends on May 16, 2022.
Having received an initial $ 20,000 in August 2020 under the Economic Injury Loan Program, EIDL staff launched a deliberate effort to discredit ZENNIE62MEDIA, INC., Based solely on ideas that proved that people working in the Small Business Administration. don’t quite understand what an online business does, of any kind.
In October of the same year, I received an email from Jim Aceson, a lawyer with the Small Business Administration, asking for corporate documents proving the existence of ZENNIE62MEDIA. I was very happy to send them, but then called him to ask what was behind the request. Jim Acheson told me that someone in the SBA had the idea that ZENNIE62MEDIA didn’t exist just because “you have two URLs associated with it”. In other words, the firm owns a number of domain addresses and for security reasons names. But to assume that the firm is not valid on this basis alone is wrong and really completely inappropriate. Luckily, Mr. Acheson agreed, but he didn’t tell me at all who came up with the crazy idea.
All you need to do to confirm that ZENNIE62MEDIA exists is to visit the Delaware Secretary of State’s website and enter the company name in the field. It will show the file number of the company, and for $ 20 you can find out that ZENNIE62MEDIA, INC is a company called “good repute”, with fees paid to date. ZENNIE62MEDIA is a c-corporation, like many technology startups, from Facebook to Google, and which has also chosen Delaware as the place to build its corporate structure. As Davis Wright explained to Tremaine LLP: “Nearly 1.4 million legal entities are registered in Delaware (including more than two-thirds of Fortune 500 companies), and about 80 percent of primary public offerings in the U.S. choose the state as a corporate home. As a result, many companies, investors and attorneys are familiar with Delaware law. ”
But the shocking thing is that the Small Business Administration staff didn’t even know how to use the Delaware website to check out ZENNIE62MEDIA! This led to a constant lie movement (in my opinion and evidence) told me of the chance to get the necessary increase in EIDL loans. Such an opportunity appeared in October 2020, but the SBA continued to send me to a “portal” that was dedicated to my initial $ 20,000 loan and then said that my request for an increase had been rejected and that they would send an email with an explanation of the reason. Not only did this email not come in, the SBA kept sending me emails asking me to sign up for a raise. So if I would – a total of six times – I would receive an email that had to link to a new application number and portal. Even before SBA officials told me that my link to the “new portal” had been sent. But when I checked the link, I just went back to the old portal, which until March 2022 was the same one I used from August 2020 until October 2020.
If this makes you dizzy, imagine that you have been dealing with it for 2 years! Then, about two months ago, I got an SBA representative who figured out the problem. The new portal was under the wrong email, allegedly related to my campaign, but actually wrong. When an SBA spokesman said he would use the new email, another SBA spokesman said on another call: that they will continue to use old and incorrect emails. He never explained why.
So as far as I’m concerned, the SBA has managed to kill my expectations of getting help. The Biden administration did not correct the EIDL problem, and an internal study found that firms’ EIDL contracts were awarded without standard diversity requirements.
The report, titled “SBA OIG Report 22-10: Evaluation of Recommended SBA Disaster Relief Loan Services,” states:
To quickly allocate loans during the COVID-19 economic crisis, the SBA relied on the previous 2018 contract but failed to follow proper procedures to ensure that the contract provided the best value to the government. The SBA has contracted for data analysis and credit recommendation services, without properly guaranteeing that contract prices are fair and reasonable in accordance with the Federal Procurement Regulations and the Agency’s policies.
The needs of the SBA have changed significantly from the 2018 Disaster Loan Agreement to the EIDL processing requirements for COVID-19, and these changes have not been fully taken into account when concluding subsequent contracts. As a result, there is no certainty that the SBA’s rates for data analysis services and credit recommendation were fair and reasonable.
The SBA also did not guarantee that the contractor met the established size standards to be eligible for the Small Business Award. In addition, the SBA did not enforce contractors ’subcontract limits, exceeding the $ 13 million limit. These awards are designed to help small businesses compete and win government contracts. Instead, the COVID-19 contract was concluded without competition and was mostly performed by a branch of one of the country’s largest mortgage lenders.
We made six recommendations to strengthen the SBA’s procurement policy and improve controls to ensure compliance with the requirements of the SBA contract program. The SBA agreed or partially agreed with all six recommendations.
But it is not reported that the Inspector General monitored the implementation of these recommendations. But even more appalling is the following: “Instead, the COVID-19 contract was concluded without competition and was mostly performed by a branch of one of the country’s largest mortgage lenders.
This firm was Rapid Financial Services, which is a Rocket Mortgage subsidiary owned by Dan Gilbert, a billionaire owner of the Cleveland Cavaliers. This contradicted the idea that small firms should have won an SBA contract, including businesses owned by women and minorities. His firm Quicken Loans contributed $ 750,000 to the inauguration of President Donald Trump in 2017. Yes, the SBA EIDL program was overseen by a firm owned by a friend of President Donald Trump. In this regard, can we ask whether this firm deliberately helped white Republican-leaning firms help the EIDL after Trump lost the 2020 election?
There is no language or evidence that the EIDL SBA program was designed to really help black businesses, even if the SBA found that it intended to help black businesses. Indeed, in March 2022, it was reported that “88% of minority-owned EIDL recipients need additional funding” in a survey published by Hello Skip, a firm from Auckland that focuses on consulting on SBA loans. Another unanswered question: did those “minority-owned EIDL Recipients”, one of whom was ZENNIE62MEDIA, receive assistance? When they were treated as ZENNIE62MEDIA, INC., The answer was no.
In general, this Congress should not allow the SBA to suspend the EIDL program, but fund it so that it continues after the 2022 by-elections out of political justice, review it, and help black business.