(from the Journal of Accountancy) The U.S. Small Business Administration (SBA) announced changes Wednesday designed to reduce delays in the Paycheck Protection Program (PPP) approval process. Millions of small businesses have applied for PPP forgivable loans since it reopened Jan. 11 with $284 billion in fresh funding. The SBA’s E-Tran and PPP Loan Processing system rejects or requires more documentation for around 30% of PPP applications. The system sometimes does not allow lenders to submit the documentation or directly address other errors, such as data mismatches. To address the concerns, the SBA said it would allow lenders to directly certify the eligibility of borrowers for first- and second-draw loans and would not require lenders to submit supporting documentation of borrowers with validation errors until they apply for loan forgiveness.
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See NBOA's recent webinar on PPP loans for more information: Employee Retention Credit & PPP 2.0: Solving the Puzzle for Your School#RegulatoryUpdates
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