The U.S. Small Business Administration 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. The new Biden-Harris Administration said it is focused on ensuring small businesses receive the support they need, so it is working with the SBA to identify immediate solutions to address eligibility, compliance, integrity, and promote transparency.
While reviewing the initial draw of PPP loans, anomalies – mostly data mismatches and eligibility concerns – were identified in approximately 4.7 percent of the 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.
The SBA said it encourages borrowers and lenders to work together as quickly as possible to resolve the issues. The SBA will automatically move favorable decisions to approval. During the newest round of PPP, the SBA has already approved more than 400,000 loans for approximately $35 billion.
Updated PPP information, including forms, guidance, and resources is at www.sba.gov/ppp and www.treasury.gov/cares.
