Restaurant Revitalization Fund Award Demand Letter

ixharry

Has anyone received a similar demand letter?

"The award calculation was calculated using the gross receipts reported in the Restaurant Revitalization application, which did not match the gross receipts reported on the 2019/2020 tax return."

The RRF award application was submitted all through Squareup which they have not followed up since then.

Looks like they submitted the incorrect gross receipts vs what reported via tax returns. This has been an issue for many people in a previous thread:

https://community.squareup.com/t5/Online-Store/Restaurant-Revitalization-reporting/td-p/320309

We went through a full audit a couple of years ago because Square failed to properly report the award to the SBA. Unfortunately, they were unable to provide any meaningful assistance during the process, as no one in their department seemed to understand the issue or how to resolve it.

Rp3

I received a letter today. Square filled out my application with the incorrect calculation method it looks like. This is a disaster.

ixharry

Have you had a chance to reach out to Square? I've been on the phone with them for the past hour and a half and have been transferred to eight different departments. So far, no one seems to know what's going on or is even aware of the situation. This is getting ridiculous and unacceptable that I cant get clarity on their mess up.

Rp3

Also currently speaking to square. Initial response was to just point me to the SBA. Now someone is hopefully looking into the details of how the application was filled.

I'm not sure if the SBA will care why it wasn't correct, though.

Have you called the SBA yet? that's my next step but I wanted to get information about how the application was filled first. Hard to remember the details from 5 years ago!

It was prefilled by Square and my memory is that it was greyed out too so couldn't edit the details, not that I would have overruled square on anything at the time anyways.

ixharry

This is exactly what ive been trying to request but to no avail. Not sure which department would be able to support this request. Do you know which department you spoke with?

I also remember that everything was pre filled by Square as well. Im waiting to get all my ducks in a row before speaking with the SBA. Apparently the best way to have communication with the SBA is via email listed in the demand letter.

Rp3

My case is escalated and they will contact me via email in 1-2 days. All I got was "engineers" for department.

I'm trying to get a copy of the application they submitted to make sure it matches what the SBA has and also clarity on why the application was filled out the way it was.

ixharry

Got it. I'll try calling again and see if I can escalate this issue.

Please keep me posted if you make any progress, and I'll do the same on my end.

EMT

Following....I also received a letter 2 days ago wanting $ paid back and really had to jog my memory, because it's been so long ago! then I remembered that Square populated all of this info for the application. I briefly chatted with an attorney who is a family friend and he recommended having my accountant correspond with the SBA. (of course my accountant is closed on Friday's) 😜 This is beyond frustrating that they can come back on these loans 5+ years later!

ixharry

This has been extremely frustrating because no one at Square seems to have the knowledge or authority to address the issue. Their customer support is outsourced to overseas call centers, and the representatives have been unable to understand or resolve the situation.

That said, Square needs to be held accountable for mishandling the application process. Not only are they unable to provide a copy of the application that was completed and submitted through Square, but they also continue to act as though it's acceptable that they cannot access any records prior to 2020. This lack of documentation and accountability is unacceptable and requires legal action against them.

Rp3

I agree. Crazy to me that the SBA apparently didn't review any applications, gave a bunch of money out, told us to spend it and save the economy, and 5 years later wants it back, within 30 days!

It's a joke. Unfortunately, it's not funny.

let us know if you find out anything useful, I've also reached out to an attorney but not expecting to hear back until at least Monday.

Rp3

"This form was the document submitted through Square to the SBA. We cannot explain how this calculation was performed as Square allowed for applicants to modify prior to submission of the application. Square instructions (listed on Square’s Website) prompted applicants at origination to have income earned in 2019 and 2020 handy to modify totals as (Square) could not account for transactions not processed through their database. Awardees were given the opportunity to modify gross sales figures which might have adjusted the award amount."

I received this from the SBA. So, it looks like the SBA and Square are going to point fingers at each other. I'm going to press Square again I guess.

ixharry

Yea, that's not accurate. There was no option to modify or change any of the values during the application process through Square. Those fields were pre-populated by Square, and we simply submitted the application as it was presented.

Are you contacting the SBA via email?

Rp3

That is what I remember as well. I logged into the SBA RRF portal and went to messages and created a new message. They responded this morning to a message I sent last night.