SBA and lenders take steps to improve PPP loan program

WASHINGTON, D.C. >> The U.S. Small Business Administration (SBA) has announced the agency and lenders are taking steps to improve the Paycheck Protection Program (PPP) so that small businesses can access much needed PPP funds.

The Biden administration is working with the SBA to “increase equitable access to underserved small businesses to assure the integrity of the program, and to promote rapid and efficient distribution of funds,” according to a press release.

As of this week, the SBA has approved $104 billion of PPP funds to more than 1.3 million small businesses. Highlights from this round include:

• Reaching more of the smallest businesses; 82% of all loans going to businesses requesting less than $100,000

• Reaching rural communities; 28% of businesses who have received funding this round are in rural communities

• Increasing partnerships with Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) who are trusted agents in extending economic relief to minority communities and underserved populations

The SBA said it is following through on its commitment to take additional steps toward improving the speed to resolve data mismatches and eligibility concerns. Those improvements will provide small businesses with as much time as possible to access PPP funds, while maintaining the integrity of the program.