EBT Applications to USDA
Doing business with the USDA can be very profitable. Think about it this way – money is no longer an issue for your clients. How great would it be to simply have clients that can spend money at your business that have guaranteed payments. No chargebacks!
A very common phone call that we receive is “why did my application get denied?” We actually received a few phone calls from business owners who stated that the USDA contracts out local parties to survey their business prior to authorizing them with a license to conduct business with EBT / SNAP. The USDA has strict guidelines and we know how to adhere to them and help apply and in some cases reapply for a license with the USDA.
Why did I get rejected?
- You were previously permanently disqualified: If any one of your other business locations was charged with trafficking in SNAP benefits that resulted in a permanent disqualification, the individual holding that license cannot reapply or apply for another EBT license. The most common question that we get is “but the business was under another LLC or Corporation.” IT DOES NOT MATTER. Ultimately, it was tied to your social security number and identity, so applying for a new location is impossible.
- You are married to someone that was previously permanently disqualified: We had a case where a man was previously permanently disqualified in 2006. In 2012, he got married and then his wife applied for and EBT license in a business that she opened. Her application was denied because she was married to somebody that had already been permanently disqualified. Remember, this is a PERMANENT AND LIFETIME disqualification. The fact that she got married to the permanently disqualified individual after his disqualification makes no difference.
- You share the same household address as somebody that was permanently disqualified: When you apply for an EBT license and you list your home address as one that has belonged to somebody that was previously disqualified, then, the USDA will cross-check to see your affiliation with that person. There have been errors made by the USDA where they did not take into account a different unit or apartment number.
- You are a blood relative of somebody that was previously disqualified: How does this happen? If your father is permanently disqualified and then you go and apply for an EBT license, you will most likely be rejected if there is documented evidence that you in fact lived at his household. When your father filed his tax returns and listed you as a dependant, he submitted those tax returns to the USDA when he applied. For this reason, your information is already in their database.
- You have a felony conviction on your record: It’s plain and simple. Whether it’s as simple as possession of a controlled substance or a crime of moral turpitude, you will be denied. It may not even matter that your crime has since been expunged since the question on the application asks whether or not you have been convicted of a crime.
- MOST IMPORTANTLY, you did not complete the application properly. This is the most common problem that we see. Government applications are complex and cumbersome. Call our office at (888) 577-1482 if you need help with an application.
There may be other items that call for a rejection of an EBT application. This list consists of common issues that may arise and call for rejection.
Problems with reauthorization:
- One of the other businesses that you own was permanently disqualified.
- One of your business partners was permanently disqualified: How does the USDA know? They have a record of a K-1 that was issued to the permanently disqualified individual from your business income tax return.