A 4506-t is an authorization for your lender to pull your last 2 years tax returns directly from the IRS and since that sector of the IRS is closed right now the lender is not able to pull your last couple years worth of tax returns which in turn is causing delays.
If you’re looking for a small business loan or line of credit during The Shutdown, make sure it’s not SBA-backed, and make sure the lender is not going to require a 4506-t. Many times the lender is not going to require a 4506-t upfront, however when you are several days into the loan process the lender may require one without notice for additional verification of your business’s finances. If you ask your lender and they can confirm that they do indeed require a 4506-t, you may want to avoid that particular lender.
We provide more case studies and finance tips weekly, but you won’t know when we do unless you complete one of the steps below!