The U.S. Small Business Administration office in Salt Lake City said the agency is taking steps to improve the first draw Paycheck Protection Program loan review process so small businesses have as much time as possible to access much-needed PPP funds.
“The SBA is committed to working with lenders and eligible borrowers to provide the necessary information for follow-up and help get small businesses back on track so that they’re able to receive another round of PPP loans swiftly,” said Marla Trollan, SBA Utah district director.
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 borrowers can access a second round of loans.
Trollan said the SBA 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 had already approved over 400,000 loans by Feb. 1 for approximately $35 billion.
“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,” said SBA Acting Administrator Tami Perriello.
The SBA addressed the PPP loan review to allow for second draw PPP loan applications to be processed in an efficient manner by hosting a national call to brief lenders on the platform’s additional detailed information that will assist in the resolution of first draw PPP loan review and potential holds that impact second draw PPP loan application approvals.
Information for employers seeking help with the PPP process is available at the SBA website, www.sba.gov/ppp.
