WASHINGTON (BRAIN) — The Biden administration is working with the U.S. Small Business Administration to address eligibility, compliance, and integrity issues while promoting transparency in obtaining first-time Paycheck Protection Program loans.
While reviewing the initial round of PPP loans, anomalies — mostly data mismatches and eligibility concerns — were identified in approximately 4.7% of the lender-submitted data, the SBA said. Those concerns require follow up between the lender and the borrower in order to get loan approval.
To address this, the SBA has started:
- Hosting a national call to brief lenders on additional detailed information that will assist in the resolution of first-time loan review and potential holds that impact second 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 lenders on the review and resolution process.
The latest round of COVID-19 pandemic funding authorized up to $284 billion toward job retention and certain other expenses through March 31, and by allowing certain existing borrowers to apply for a second loan.
The SBA encourages borrowers and lenders to work together as quickly as possible to resolve issues. During the newest round of PPP loans, which was approved on Dec. 27, the SBA has approved over 400,000 loans for about $35 billion.
Through its 68 district offices, the SBA will work closely with the Biden administration to further leverage its resource partner network and expand on multilingual access and outreach about the PPP. Updated PPP information, including forms, guidance, and resources is at sba.gov/ppp and treasury.gov/cares.
PeopleForBikes also has been offering industry loan resources to retailers since the pandemic began in the spring.
