Long story short. In April 2020 I applied for PPP1 with 2 different lenders (Paypal and Local Bank) .

Somhow BOTH were funded using the same EIN.

I stuck with the local bank and set the cash from the PayPal loan aside. I did NOT spend a dime of it. At the time, Paypal didn't have a portal link or any means of repaying or cancelling the loan (at least that I was aware of) .

I was finally able to send the money back at the end of the year.

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Fast forward to Feb 2021 and I am trying to apply for PPP2 with the same local bank. Everything is in order , however the cannot clear the loan origination with the SBA because it show I already had an active loan.

For the last month I have been hounding Paypal to confirm that their loan had been closed. TODAY I found out that the SBA does in fact have the loan listed as PAID IN FULL.

Here's the problem... Because the SBA has 2 loans attached to my EIN, their "system" is telling them that I already recieved 2 draws and will not allow another loan.

I have been arguing that the Paypal loan should show as CANCELLED not PAID IN FULL, but I can't seem to get anywhere.

The SBA hotline is a dead-end as soon as you mention PPP. I called my SBA district office....they can't help. I dont know what to do......

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I desperately need this second round of funds to float my business into the summer months. Am I screwed? Has anyone else seen this Issue?

I'm kind of falling apart and terrified that I am about to lose my business.