The US Small Business Administration (SBA) announced on Tuesday that they are taking measures to improve PPP1 review so businesses can get funds as soon as possible.
This press release comes after SBA finds data discrepancies and eligibility concerns of about 4.7% lender-submitted data. Despite finding these anomalies, the agency aims to expedite the review process and work closely with stakeholders to provide necessary actions.
Specifically, the Agency have taken steps to handle the issue by:
1. Hosting a national call with lenders to address any loan review issues or holds on Tuesday
2. Providing additional guidance on how to “Resolve First Draw PPP Loan “Unresolved Borrowers” and Hold Codes”
3. Equipping field teams of lender relations specialists with information to assist lenders and borrowers who may be experiencing a hold.
According to the SBA Acting Administrator Tami Perriello “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. The Agency is committed to making sure compliance checks are executed on the front-end. The SBA is also committed to addressing issues more efficiently moving forward, to ensure fair and equitable access to small businesses in every community.”
The Agency has started to process new second-draw loan applications for unresolved
borrowers. According to them, these applications will be automatically moved to a “research” status and borrowers must submit documentation as soon as possible to clear the issue. Once the issue is determined resolved, applications will be automatically moved to the next stage of the process and will not be required to be re-submitted by the lender. However, SBA stated that “lenders that submitted a Second Draw PPP Loan guarantee application before January 27, 2021 that was rejected due to an unresolved issue with the first draw PPP Loan should resubmit these applications.”
More than 400,500 PPP loans have been approved since the start of 2021 and applications will continue to be accepted until March 31 – or until funds run out.
If you are experiencing an issue with your 1st PPP loan, you must coordinate with your Lender or CPA immediately. You may book a free-consultation with us if you need assistance to access your 2nd PPP loan https://calendly.com/levine-and-associates.