WASHINGTON (Reuters) – The U.S. Small Business Administration (SBA) said Tuesday it had approved 400,000 more $ 35 billion worth of pandemic relief loans and was trying to sort out issues with operating bags with the program built by lenders.
The SBA launched the third round of the Paycheck Protection Program (PPP) this month, but major changes to its rules, process and technology platform, have caused problems that slowed down agreements, a bank group said Tuesday.
Companies wishing to apply for a second PPP loan encountered technical hurdles, said the Bankers Association of America, while lenders receive a “high number of false error messages” when sending including loan applications.
Reuters reported this month that government officials had pressured large lenders earlier to go live with the latest round of the program despite many unresolved issues.
The SBA said on Tuesday that a review of loans for the first time found irregularities – “largely data mismatch and eligibility concerns” – in about 4.7% of the data submitted by the lender. into.
“These concerns must continue between the lender and the lender so that fishermen can access the second round of loans,” the SBA said, adding that it would provide guidance to help lenders operate. through the difficulties they encounter.
Under the PPP, companies get loans from banks and fintech companies that will be repaid by the government if the money is spent on eligible costs. Some $ 525 billion worth of PPP loans were granted last year through 5.1 million loans.
Congress expanded the program by a further $ 284 billion last month. It also changed the rules about who was eligible, how much money could be spent, as well as changing the process for applying and approving. loans.
Reciting with Michelle Price and Gui Qing Koh