If your wife's friend is with a national or super regional bank, like Chase, Wells Fargo, US Bank, etc, even that relationship may not help since these banks have very strict underwriting rules, and anything outside of that box gets denied. 

Any real estate agents or brokers had issues with a PPP lender denying their application due to SBA restrictions on the NAICS code?

Lender can call the HELOC under certain conditions.I know there are some lenders who will deny this, but during the last financial crisis, I had 3 clients with HELOC's on their primary residence had their HELOC frozen . 

That should raise red flags to them, but it doesn't mean they will deny the application.Lastly for my post, the deal needs to make sense to your lenders. 

Read CAA's letter opposing AB 828 here.This bill denies equal justice to housing providers by:Forcing landlords to reduce rents by 25% even if a tenant cannot demonstrate a hardship or need.Allowing judges and the court system to set rents and change the rental agreements already in place.Assuming every tenant is facing a hardship related to COVID-19 and must be compensated for this hardship.Protecting nuisance tenants as it does not require tenants to answer an unlawful detainer complaintMandating that rental property owners demonstrate an economic hardship to collect the contracted rent.AB 828 is an unfair attempt to allow the government and the courts to give reduced rent to all tenants even if they have face no economic hardship, and it provides safeguards for landlords.Contact your state legislator and ask him or her to VOTE NO on AB 828.

I tried to reach out to credit unions in the area (out of state investor) of my subject property and they all denied me membership based on those reasons.

So as a non-resident property owner, I am denied access to my house.

I'm not trying to deny it happened, because I don't know anything about it, but an article with a subheading "karma's a b**ch" obviously isn't concerned with telling the whole story on anything. 

Can he deny?

Even if your application is denied later you don’t have to pay back the advance, it is essentially a $10k grant disbursed in 3 days from initial application request.