WASHINGTON—The U.S. Small Business Administration (SBA) said it is taking steps to improve the First Draw Paycheck Protection Program loan review so that small businesses have as much time as possible to access much needed PPP funds.
During the newest round of PPP, the SBA has already approved over 400,000 loans for approximately $35 billion, the agency said.
“The Biden-Harris Administration is focused on ensuring small businesses receive the support they need to keep their doors open and continue to employ millions of Americans across the country. The Administration is working with the agency to identify immediate solutions to address eligibility, compliance, integrity, and promote transparency,” the SBA stated in a release.
While reviewing the initial draw of PPP loans, anomalies – mostly data mismatches and eligibility concerns – were identified in approximately 4.7% of the lender-submitted data, the SBA explained.
“These concerns will require follow-up between the lender and the borrower so that borrowers can access a second round of loans,” the agency stated. “Prior to this newest PPP round, the SBA supported 5.2 million PPP loan borrowers, providing more than $525 billion in economic relief to small businesses and other eligible entities.”
Steps Taken
The SBA said it is addressing the PPP loan review to allow for Second Draw PPP loan applications to be processed in an efficient manner by:
- Hosting a national call to brief lenders on the platform’s additional detailed information that will assist in the resolution of First Draw PPP loan review and potential holds that impact Second Draw PPP loan application approvals
- Equipping the agency’s field team of lender relations specialists with information so they can provide support to lenders and borrowers in understanding the issues and facilitating the appropriate responses to resolve
- Providing additional guidance to PPP lenders on the review and resolution process