The Small Business Administration must clear thousands of paycheck protection program loans currently stuck in the agency’s system, a coalition of lender groups asked in a letter to lawmakers on March 5.
These loans, signaled by a strengthened set of automated checks by the agency, could mean many small businesses are excluded from the program as the March 31 PPP deadline looms large, groups such as the American Bankers Association, the Credit Union National Association and the Independent Community Bankers of America, said in a letter to the House and Senate small business committees.
“With the authorization expiration date approaching March 31, 2021, we are seriously concerned that many of these loans currently labeled with a withhold code will remain on hold until that date,” the groups wrote. We are also concerned that the new loans uploaded to the SBA portal this month may be pending when the portal closes. As a result, businesses that should have been eligible to receive PPP funds – including those in hardest-hit communities that may not have benefited from the PPP last year – will be locked out and will not be able to benefit from the PPP. access that emergency capital if needed.
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