Newsy Investigates: Bureaucratic Blunders Block Small Business Relief

Terri Senecal, co-owner of Sacchetti Music, faced challenges during the pandemic. Invited by the SBA to apply for COVID aid, her application was rejected due to incorrect reasons like unpaid child support, which she never owed. Many small business owners faced similar issues due to new anti-fraud measures and technical glitches. The SBA acknowledged errors and set up an appeal process. Some, like Jamie Quinones, succeeded in appeals, while others, like Senecal, were denied due to technicalities. The situation highlights the balance between preventing fraud and supporting genuine businesses.

What was the reason given by the SBA for rejecting Terri Senecal's application?

• She failed to pay child support.

• She had unpaid taxes.

• She missed the application deadline.

• Her business was not registered.

Why did Jamie Quinones initially get denied for the SBA aid?

• She was not a US citizen.

• Her business was too new.

• Her application was incomplete.

• She had a criminal record.

What was a major reason for the high rate of SBA application denials?

• Inaccurate background checks.

• Lack of funds.

• Too many applications.

• Strict business criteria.

What was the purpose of the new anti-fraud measures by the SBA?

• To speed up the application process.

• To prevent fraudulent claims.

• To increase the amount of aid given.

• To reduce the number of applicants.

What was the outcome of Quinones' appeal to the SBA?

• She was asked to reapply.

• Her business was audited.

• She received $9,000 in aid.

• Her application was denied again.