SBA Lenders Take More Steps to Improve Paycheck Protection Program
Loan Data Show 1.3 million Loans and Significant Increase
to Underserved Entrepreneurs
SALT LAKE CITY – The U.S. Small Business Administration and lenders are taking more strides in improving the Paycheck Protection Program (PPP) so small businesses can better access much needed PPP funds to make it through the pandemic, recover, and come back stronger.This week, the SBA hit a major milestone of approving $103 billion of PPP funds to more than 1.4 million small businesses. Highlights from this round include:Reaching more of the smallest businesses; 82% of all loans going to businesses requesting less than $100KReaching rural communities in a meaningful way; 28% of businesses who have received funding this round are in rural communitiesIncreasing partnerships with Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) who are trusted agents in extending economic relief to minority communities and underserved populations"Here in Utah the latest PPP loan figures as of Feb. 7, stand at 9,705 loans totaling more than $827 million. In a few short weeks since the second round of PPP reopened, Utah lenders and small business owners have worked together to secure a significant amount of funding for Utah businesses and the people they employ," said SBA Utah District Director Marla Trollan. The Administration is working with the Agency to increase equitable access to underserved small businesses, to assure the integrity of the program, and to promote rapid and efficient distribution of funds.The SBA is also following through on its commitment to take additional steps towards improving the speed to resolve data mismatches and eligibility concerns so that small businesses have as much time as possible to access much needed PPP funds, while maintaining the integrity of the program. Three important 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 and are eligible receive them as quickly as possibleAllow lenders to upload supporting documentation of borrowers with validation errors during the forgiveness processCreate additional communication channels with lenders to assure we are constantly improving equity, speed, and integrity of the program, including an immediate national lender call to brief them on the Platform’s added capabilities "We are pleased that the Paycheck Protection Program is targeting the smallest of small businesses and providing economic relief at a crucial time in American history. The SBA has achieved another major milestone to provide critical recovery capital to America’s small businesses by approving 1.3 million PPP loans totaling $104 billion in the current round. While we are excited that we are doing a better job of reaching the hardest hit industries and communities, we are committed to taking additional steps to ensure that there is equitable access for underserved businesses and that we are leading with empathy to support small businesses in a difficult spot," says SBA Senior Advisor to the Administrator Michael Roth.Through SBA's 68 district offices, the Agency will work in close partnership with the Biden-Harris Administration to further leverage its resource partner network and expand on multilingual access and outreach about the PPP. Updated PPP information, including forms, guidance, and resources can be found at www.sba.gov/ppp and www.treasury.gov/cares.###About the U.S. Small Business AdministrationThe U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
More From 106.1 KDXU
