SBA Atones for Loan Payment Mix-Up
A Charlotte, North Carolina woman is still trying to get her house cleaned up after a flood damaged it last year, but when she received an insurance check, she had a whole new battle to deal with.
Linda Booth’s insurance gave her money to buy new furniture and pay contractors to finish repairs; the $11,000 check was made out to her and the SBA, which had loaned her money after a flood 15 years ago. But when Booth sent the check to the SBA for their signature, they applied it to her outstanding loan.
“It was unfair what they did, because I was paying on my loan,” Booth said. Despite complaints to the SBA, Booth said she couldn’t convince them to return her money. When a local Charlotte news team called the SBA, a spokesperson investigated the issue and called back to say they would issue Booth a check for the full $11,134. They also called Booth to give her the good news.