A small bakery in Walnut Creek found itself in a financial nightmare when over $200,000 vanished from its bank account due to an identification mishap. The owner, Sarah Torres, was left in distress as her business account was frozen, leaving her unable to access any funds for more than a month.
The bakery, known as A Sweet Affair Bakery, had been eagerly waiting for relief funds from the U.S. Treasury in the form of Employee Retention Credit checks. These checks were crucial for the survival of the family-owned business, especially since they did not receive any federal Paycheck Protection Program loans.
Despite Torres’ attempts to deposit the checks at a local Bank of America branch, a hold was placed on the funds, and her account was subsequently frozen. This unexpected turn of events forced Torres to explore desperate measures, including considering shutting down the bakery or refinancing her home to keep the business afloat.
After numerous unsuccessful attempts to resolve the issue with the bank, Torres sought help from ABC7 News 7 On Your Side. Following their intervention, it was revealed that the problem stemmed from a change in the bakery’s tax employer identification number (EIN), which had not been updated with the IRS.
Bank of America cited this discrepancy as the reason for the frozen funds, initially suspecting fraudulent activity. However, tax experts pointed out that the bank should have been able to process the checks despite the EIN change, emphasizing that the situation could have been handled differently.
The ongoing ordeal highlighted the challenges faced by small businesses dealing with financial institutions, underscoring the importance of proper communication and understanding between banks and their clients. Despite the stressful circumstances, Torres expressed gratitude for the support received from ABC7 News 7 On Your Side in resolving the issue.
Going forward, this incident serves as a cautionary tale for businesses, emphasizing the need for accurate record-keeping and proactive communication with financial institutions to avoid similar mishaps. As the bakery owner finally regained access to her frozen funds, she expressed relief and appreciation for the assistance provided during a challenging time.
While the bakery’s financial woes have been resolved, the incident sheds light on the complexities small businesses face when navigating financial transactions and the importance of timely and efficient resolution of such issues to ensure their continued operation and success.
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