The SBA issued a procedural notice and additional resources on resolving issues with first-draw Paycheck Protection Program loans to ensure borrower eligibility for second-draw loans, including codes to submit to the PPP loan platform.
The SBA resources include:
- Procedural Notice: Platform Procedures for Addressing Unresolved Issues
- User Guide: Resolving First Draw PPP Loan Hold Codes
- Documentation List: SBA Hold Codes Clearing
- Slide Deck: Platform Procedures for Resolving Hold Codes
The guidance reiterates that if the SBA is reviewing a borrower’s first-draw PPP loan, the agency will notify the lender when it applies for a second-draw loan guaranty. The lender will not receive an SBA loan number until the issue is resolved.
Additionally, the SBA said that on Wednesday it began processing new second-draw loan applications for unresolved borrowers. These submissions will be automatically moved to research status, and the platform will allow lenders to submit documents supporting the resolution of the outstanding issue. However, second-draw loan applications submitted before Jan. 27 that were rejected due to unresolved issues with the first-draw loan will need to be resubmitted.
The SBA earlier this week said data mismatches, eligibility concerns, and other anomalies were identified in approximately 4.7 percent of first-draw lender-submitted data.
Lenders experiencing issues inputting loans should call the lender hotline at 833-572-0502 or send SBA a message by selecting "New Message" on the “Inbox” located on the Forgiveness Platform. Regional and district SBA offices may also be of assistance with PPP questions.
Additional PPP information and resources are available on the SBA and Treasury sites, today's ICBA Community Bank Briefing, ICBA's PPP and EIP News page, the Independent Bankers Association of Texas's matrix of PPP updates in the stimulus law, and ICBA's summary of the stimulus package's community banking provisions.
