Washington, January 26, 2021 (GLOBE NEWSWIRE) – The U.S. Small Business Administration 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 P3 funds. The Biden-Harris administration works to ensure small businesses get 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.
When reviewing the initial drawdown of PPP loans, anomalies – mainly data inconsistencies and eligibility issues – were identified in approximately 4.7% of the data submitted by lenders. These concerns will require follow-up between the lender and the borrower so that borrowers can access a second round of loans.
The SBA is committed to working with eligible lenders and borrowers to provide the necessary tracking information and help get small businesses back on track so they can quickly receive another round of PPP loans. The SBA encourages borrowers and lenders to work together as quickly as possible to resolve issues. The SBA will automatically pass favorable decisions for approval. During the last PPP cycle, the SBA has already approved more than 400,000 loans for approximately $ 35 billion.
“Prior to this new round of PPP, the SBA supported 5.2 million PPP loan borrowers, providing more than $ 525 billion in economic assistance to small businesses and other eligible entities. The Agency undertakes to ensure that compliance checks are carried out upstream. The SBA is also committed to dealing with issues more effectively in the future, to ensure fair and equitable access to small businesses in every community, ”said Interim Administrator of SBA Tami Perriello.
The SBA immediately begins reviewing PPP loans to enable efficient processing of second-draw PPP loan applications by:
- Hold a national appeal to inform lenders about the platform’s additional detailed information that will help resolve the review of first-draw PPP loans and potential holdbacks impacting PPP loan application approvals from second print
- Equip the Agency’s field team with lender relations specialists with information so that they can help lenders and borrowers understand issues and facilitate appropriate responses to resolve them
- Provide additional guidance to PPP lenders on the review and resolution process
Through SBAs 68 district offices, the Agency will work in close partnership with the Administration to make more use of its network of resource partners and develop multilingual access and awareness of the PPP. Updated PPP information including forms, tips and resources are available at www.sba.gov/ppp and www.treasury.gov/cares.
About the United States Small Business Administration
The Small Business Administration of the United States is making the American dream of becoming a business owner a reality. As the only resource and go-to voice for small businesses backed by the strength of the federal government, the SBA gives entrepreneurs and small business owners the resources and support they need to start, grow or grow their businesses, or recover from a declared situation. disaster. It provides services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.