SBA: Lender Review May Be Required for Certain PPP Loans
May 15, 2020
The Small Business Administration yesterday notified Paycheck Protection Program lenders that certain loans in their PPP portfolios may require review. Those loans—which have been marked by SBA as being in “research” status—must be reviewed for accuracy and completeness. A lender should verify the borrower’s name, EIN or Social Security number for these loans and make any necessary changes by today at 5 p.m. EDT.
SBA provided instructions for lenders on how to access the Capital Access Financial System, which was recently updated with a new search functionality intended to help PPP lenders review the loans in their portfolios.
Additionally, SBA announced an operational change in how it receives PPP loan data from lenders through the E-Tran system. “Business type will now determine whether a loan application should be submitted with either an SSN or EIN,” SBA said, adding that lenders may no longer use a SSN in the place of a primary TIN for types of businesses requiring an EIN.
As of 5 p.m. Thursday, SBA had approved 2.7 million round two PPP loans amounting to $193 billion. Of that total, approximately $101.8 billion in loans were made by lenders with over $50 billion in assets, $29.4 billion by lenders with $10-50 billion in assets and $62.3 billion by lenders with under $10 billion in assets. The average loan size for round two was $71,679. View the instructions for accessing CAFS.