Hudson, FL asked in Banking and Business Law for Florida

Q: my bank is denying me the release of my funds its been over 90 days is that legal? they closed the account july 26th

the deposit was a ppp loan that the security team failed to verify upon initial deposit and erroneously released the funds i was unaware of the loan not being fully verified i used 1600 of it and on july 4th they closed my account under fraud. turns out it was the mistake of an employee not fully verifying the loan and when they dicided to verify it 30 days later it rejected for unmatched balance. they continued to lead me to believe it was a fraud investigation and lied about it being seized by law enforcement now they want a LOI but my lender declined stating at this point it would definitely trigger a fraud investigation being that the loan has been dispersed over 3 months ago;. i would lose my loan and possibly face prosecution and the bank is unwilling to cooperate even though it was a mistake on their part that triggered this entire mess. cAusing me to lose my business revenue for the whole summer and counting they didnt follow terms conditions and showed lack of duty care neglig

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1 Lawyer Answer
Bruce Alexander Minnick
Bruce Alexander Minnick
  • Business Law Lawyer
  • Tallahassee, FL
  • Licensed in Florida

A: This problem is not unusual.

The PPP loan program was the first of its kind ever; and the government allowed the nation's banks and other financial organizations to make too many lending decisions that the SBA should have made.

I have helped at least a dozen people in similar situations figure it out and get their wounded businesses up on top of the waves and moving forward again.

Caveat: Without more information--and without seeing copies of loan documents, funding notices and all subsequent documents you received I am unable to tell you (a) where the problem is, (b) whether it can be fixed and (c) how to fix it.

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