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On February 10, 2021, the U.S. Small Business Administration (SBA) announced that they will be working with lenders to take steps to improve the Paycheck Protection Program (PPP). The announcement was presented in Release Number 21-15, which outlines steps that will help small businesses access much-needed PPP funds to persevere through the pandemic. The main goals of the improvements are to increase equitable access to underserved small businesses, to assure the program’s integrity, and to promote the rapid and efficient distribution of funds.
The SBA has outlined three steps to improve the speed of resolving data mismatches and PPP eligibility concerns. These changes will give small businesses more time to access much needed PPP funds. The three changes will:
- 1) Enable lenders to directly certify the eligibility of borrowers for first-draw and second-draw PPP loan applications with validation errors. This step will help ensure businesses who need funds and are eligible receive them as quickly as possible.
- 2) Allow lenders to upload supporting documentation of borrowers with validation errors during the forgiveness process.
- 3) Create additional communication channels with lenders to assure the SBA is continually improving the program’s equity, speed and integrity. This step includes the SBA hosting an immediate national lender call to brief lenders on the SBA platform’s added capabilities.
As of this week, the SBA announced that in the latest round of the program, it has approved $104 billion of PPP funds to more than 1.3 million small businesses. Of these loans, 82% are for less than $100,000, 28% of small businesses receiving loans are from rural communities, and the program has increased 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.
If you have additional questions about the latest round of the PPP, our PPP loan consultants are here to help. We can assist with applications for first- or second-draw PPP loans and PPP loan forgiveness calculations. Contact us for more information.
Bert Mills, CPA, is the Managing Partner at Moore Colson. In his role, Bert sets the vision and mission of the Firm and works closely with the Firm’s leadership to drive and implement strategies.
Andy Starnes, CPA, is a Partner and Tax Services Practice Leader Moore Colson. Andy’s specialties include corporate tax compliance and planning, business consulting and multi-generational planning with a focus on the construction, professional services and staffing industries.
Chris Arnone, CPA, is a Partner and Business Assurance Practice Leader at Moore Colson. Chris has over 20 years of experience providing audit, accounting and consulting services for companies in the transportation, manufacturing, distribution, staffing, private equity and venture capital industries.