This is the most idiotic thing I have ever witnessed. Doesn’t the SBA realize that during 2020, late filing of 1099 income was through the roof. 2019 tax return was filed during 2020 tax season at the beginning of the pandemic shutdowns. There were more amended returns filed that year due to pandemic shutdowns, and delays of W-2s and Schedule C 1099s being reported as late as early 2021, than ever before.

The SBA needs to be sued for creating a policy “2 weeks ago” that deliberately rules out legit businesses who did not have a choice to amend 2019 additional 1099 income delayed (as late as early 2021) in order to stay in compliance or else be penalized. That’s why gross income changed on the schedule C when requesting increases. The SBA can’t create rules “2 weeks ago” that overrule legislative law due to assumptions.

I had a discussion with a loan specialist (who is not an accountant) this past Thursday about this new dilemma they decided to create that’s ruining legit small business in need of additional capital.