As the Small Business Administration prepares to wind down the Paycheck Protection Program at the end of the month, the American Bankers Association and nine other financial services trade called on SBA to clear thousands of loans that are currently on hold before shutting the program down. In a letter to House and Senate Small Business Committee leaders, the groups flagged that lenders have received a high number of hold codes or error messages that have held up the processing and funding of PPP loans to struggling small businesses for “several weeks or longer.”
The groups also called on lawmakers to urge SBA to hold the program open long enough for all loan applications that have been submitted to SBA by the March 31 deadline to be processed and funded. “Since its inception, the PPP has served a vital role in helping millions of small businesses survive,” the groups wrote. “As this program reaches its current congressionally authorized sunset date, thousands of our nation’s small businesses have filed or intend to file applications for this critical economic lifeline. They should be given the opportunity to receive these funds through the full program authorization period.”
