The SBA is taking steps to improve the credit verification of the First Draw Paycheck Protection Program

Washington, Jan. 26, 2021 (GLOBE NEWSWIRE) – The US Small Business Administration is taking steps to improve credit screening on the First Draw Paycheck Protection Program so that small businesses can have as much time as possible to access much-needed PPP funds. The Biden-Harris administration is focused on making sure small businesses get the support they need to keep their doors open and continue to employ millions of Americans across the country. The administration works with the agency to find immediate solutions to improve eligibility, compliance, integrity and promote transparency.

The review of the initial utilization of PPP loans found anomalies – mainly data mismatches and eligibility concerns – in around 4.7% of the data submitted by lenders. These concerns require follow-up between the lender and the borrower in order for borrowers to have access to a second round of credit.

The SBA is committed to working with lenders and eligible borrowers to provide the necessary follow-up information and to help small businesses get back on track so they can quickly get another round of PPP loans. The SBA encourages borrowers and lenders to work together as soon as possible to resolve the issues. The SBA automatically postpones positive decisions for approval. During the latest round of PPPs, the SBA has approved over 400,000 loans totaling approximately $ 35 billion.

Prior to this latest round of PPP, the SBA supported 5.2 million PPP borrowers and provided more than $ 525 billion in economic relief to small businesses and other eligible entities. The agency undertakes to ensure that conformity tests are carried out at the front-end. The SBA is also committed to addressing issues more effectively to ensure fair and equitable access to small businesses in every community, “said Deputy SBA Administrator Tami Perriello.

The SBA deals immediately with the review of PPP loans in order to enable the efficient processing of PPP loan applications in the second stage through:

  1. Conducting a national call to inform lenders of the platform’s additional detailed information that will be helpful in resolving First Draw PPP credit review and potential holds affecting the approval of Second Draw PPP credit applications

  2. Providing information to the agency’s field service team of credit relationship specialists so that they can assist lenders and borrowers in understanding the problems and providing the appropriate answers to resolve them

  3. Providing additional guidance to PPP lenders on the review and settlement process

Through SBAs 68 district offices, the agency will work closely with the administration to ensure their Resource partner network and continue to expand multilingual Access and public relations to the PPP. For updated PPP information, including forms, guides, and resources, see www.sba.gov/ppp and www.treasury.gov/cares.

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Via the US Small Business Administration

The US Small Business Administration is making the American entrepreneurship dream come true. As the single point of contact and voice for small businesses backed by the strength of the federal government, the SBA provides entrepreneurs and small business owners the resources and support they need to start their business, grow, or expand, or escape from a declared 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.

CONTACT: Press Office United States Small Business Administration Press_Office@sba.gov

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