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The Small Business Administration said Tuesday that it has approved more than 400,000 Paycheck Protection Program loans for approximately $35 billion since the program reopened Jan. 11.
"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," SBA Acting Administrator Tami Perriello said Tuesday in a statement.
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SBA, she said, "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."
The SBA said it is "immediately addressing" the PPP loan review to allow for second-draw PPP loan applications to be processed efficiently by:
- Hosting a national call to brief lenders on additional information that will assist in the resolution of first-draw PPP loan review and potential holds that affect second-draw PPP loan application approvals;
- Equipping the agency's field team of lender relations specialists with information so they can provide support to lenders and borrowers in understanding the issues and facilitating the appropriate responses to resolve; and
- Providing additional guidance to PPP lenders on the review and resolution process.
SBA said that while reviewing the initial draw of PPP loans, anomalies — mostly data mismatches and eligibility concerns — were identified in approximately 4.7% of the lender-submitted data.
"These concerns will require follow-up between the lender and the borrower so that borrowers can access a second round of loans," SBA said.
SBA said it is "taking steps to improve" the first-draw PPP loan review so that small businesses have as much time as possible to access PPP funds.
The Biden-Harris administration is working with SBA "to identify immediate solutions to address eligibility, compliance, integrity, and promote transparency," SBA said.
First-draw PPP loans are for borrowers who did not get a PPP loan before Aug. 8, 2020.
Second-draw PPP loans are for eligible small businesses with 300 employees or fewer and that previously received a first-draw PPP loan.
"These borrowers will have to use or had used the full amount of their First Draw loan only for authorized uses and demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020," the SBA explained. "The maximum amount of a Second Draw PPP loan is $2 million."
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Melanie Waddell
Melanie is senior editor and Washington bureau chief of ThinkAdvisor. Her ThinkAdvisor coverage zeros in on how politics, policy, legislation and regulations affect the investment advisory space. Melanie’s coverage has been cited in various lawmakers’ reports, letters and bills, and in the Labor Department’s fiduciary rule in 2024. In 2019, Melanie received an Honorable Mention, Range of Work by a Single Author award from @Folio. Melanie joined Investment Advisor magazine as New York bureau chief in 2000. She has been a columnist since 2002. She started her career in Washington in 1994, covering financial issues at American Banker. Since 1997, Melanie has been covering investment-related issues, holding senior editorial positions at American Banker publications in both Washington and New York. Briefly, she was content chief for Internet Capital Group’s EFinancialWorld in New York and wrote freelance articles for Institutional Investor. Melanie holds a bachelor’s degree in English from Towson University. She interned at The Baltimore Sun and its suburban edition.
