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CASTLE ROCK, Colo. – Denver7 is committed to helping Colorado bounce back in the safest, most efficient way, and sometimes that means warning people about paying for services they may not need.
Castle Rock owner Avery Kyle has a cautionary tale to share.
“It’s what I’ve been doing for 25 years,” Kyle said. “Then all of a sudden he disappeared.”
After the pandemic decimated his Castle Rock DJ and karaoke business, Avery Kyle Entertainment, he Googled disaster loan assistance and found New York-based Affinity Beyond Capital.
He completed the company’s online application for an Emergency Injury Disaster Loan (EIDL) and was surprised.
“So, I made the request and a few days later, a thousand dollars was withdrawn from my account,” he said. “I had no idea it was going to be taken out at first. I thought it would be taken out of loan when I received it.”
When Kyle complained, company CEO Moe Ghani gave him a refund, but only for $500, saying Kyle would get the EIDL loan.
A few weeks later, the Small Business Administration denied the loan.
“We don’t have the loan, so I’m getting my money back, right? And he said ‘no,'” Kyle said. “Even though it’s legal, I was like, ‘How moral or ethical is that? Does it feel good to do this to a family that can least afford it?'”
Kyle contacted Contact7 and we contacted the Small Business Administration.
An SBA spokesperson said not only is there no need to go through a third-party company to apply for an EIDL loan, it’s free to apply, and there are many free services to help businesses complete applications.
“We have millions of applications from businesses and sole proprietors who submitted applications without any issues,” said Burl Kelton of Small Business Administration Disaster Assistance. “And we offer free support.”
Kelton referred business owners to this link to apply for a freebie: covid19relief.sba.gov/#/.
For business owners who need free help with loan paperwork, the SBA’s Customer Service Center can be reached at 800-659-2955.
Contact7 called Ghani, and he didn’t want to speak on camera, but said his company offered proofreading and financial expertise for the $1,000 fee. Ghani also showed the form on which Kyle accepted the processing fee.
However, Ghani agreed to refund all of Kyle’s money. He also stated that his company no longer offers EIDL application services.
“This company did nothing. I basically filled out the SBA form through their website,” Kyle said.
Kyle just got the remaining $500 in his bank account, but as Colorado bounces back, he feels sorry for other desperate small business owners looking for a little help.
“Why does someone have to enlighten you to do the right thing? I don’t understand that,” Kyle said. “We are eternally grateful to you for coming to help us.”
