WASHINGTON—The Small Business Administration (SBA) has issued a new procedural notice to revise procedures related to hold codes on first-draw Paycheck Protection Program (PPP) loans and other error messages.
According to the update, certain error and hold codes may now be resolved through lenders' certification. Lenders can obtain additional documentation to clear hold codes on loan applications, but do not have to submit these documents to the SBA at this time. The documents can be submitted to the SBA alongside forgiveness or guaranty purchase requests, NAFCU said.
The change in process is related to the SBA's new process to conduct front-end compliance checks on loan guaranty applications for new first- and second-draw PPP loans.
The SBA indicated it will randomly sample loan files where a lender has submitted a lender certification to remove hold or error codes to verify appropriate information and documentation was obtained by the lender.
Additional details for resolving hold and error codes through SBA review, duplicate loans and multiple DUNS issues, and more can be found in the procedural notice. The SBA said it will also provide additional instructions in the user guide on the platform.