The Small Business Administration and lenders say they are taking additional steps to improve the Paycheck Protection Program so small businesses can access much-needed PPP funds to help them through the COVID-19 pandemic and recovery, according to sba.gov.
The goal is to increase equitable access to underserved small businesses; assure the integrity of the program; and promote efficient distribution of funds.
This week, the SBA hit a milestone of approving $103 billion of PPP funds to more than 1.4 million small businesses. Highlights include:
- Reaching more of the smallest businesses—82% of all loans are going to businesses requesting less than $100,000
- Reaching rural communities—28% of businesses who have received funding this round are in rural communities
- Increasing partnerships with community development financial institutions and minority depository institutions, which are trusted agents in extending economic relief to minority communities and underserved populations
The SBA also is committing to improving the speed to resolve data mismatches and eligibility concerns so small businesses have as much time as possible to access PPP funds while maintaining the integrity of the program. Three significant changes will enable lenders to directly certify eligibility of borrowers for first draw and second draw loan applications with validation errors to ensure businesses who need funds are eligible receive them as quickly as possible; allow lenders to upload supporting documentation of borrowers with validation errors during the forgiveness process; and create additional communication channels with lenders to assure the equity, speed and integrity of the program constantly is being improved.
