The U.S. Small Business Administration (SBA) has approved over 400,000 loans worth approximately $35 billion in the latest round of Paycheck Protection Program (PPP) loans, which opened Jan. 11. However, it’s also trying to improve upon its loan review process so small businesses have more time to access the funds.
According to a press release from the SBA, the Biden-Harris Administration has been working with SBA to determine immediate solutions to “address eligibility, compliance, integrity, and promote transparency.”
Certain discrepancies in mismatched data and eligibility have been discovered in 4.7% of lender-submitted data.
“These concerns will require follow-up between the lender and the borrower so that borrowers can access a second round of loans,” according to the press release.
SBA noted below changes are being made to address the PPP loan review for second-draw applications to be processed more efficiently:
(1) 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
(2) 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
(3) Providing additional guidance to PPP lenders on the review and resolution process
In spring, SBA supported 5.2 million borrowers with $525 billion in funds for small businesses and eligible entities.
“The Agency is committed to making sure compliance checks are executed on the front-end,” SBA Acting Administrator Tami Perriello said in the press release. “The SBA is also committed to addressing issues more efficiently moving forward, to ensure fair and equitable access to small businesses in every community,”
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