So I spoke to my congressman office. Here are the facts.
Square does approve or deny loans. SBA is there just to honor the application. Due to the new guidelines that were put in place, E-tran system has not been performing like it's supposed to. SBA just verifies the info. Because of the system errors the SBA comes back and say info cannot be verify, examples:
Business wasn't open
criminal history
Address doesn't match
Holds that's in place from the first PPP loan
Square is the only person that can clear the codes and they have SBA reps or a hotline to use that suppose to help them clear the code.
I spoke to Congressman Ted deutch office for my state and they are able to assist if you aren't getting anywhere with merchants. These are issues across the board and that's why the extension was put into place to give time for lenders to correct the error codes..
Again the SBA DOES NOT DENY OR APPROVE THE LOAN. SBA is there just to verify the info, and if there is a error then Square isn't able to process the loan to get a loan number. Square approves the loans, SBA verifies the info of the person applying for the loan
