The Small Business Administration must release thousands of loans from the Salary Protection Program that are now blocked in the agency’s system, a coalition of groups of creditors requested in a letter to lawmakers on March 5.
These loans, signaled by a restricted set of automated checks by the agency, could mean that many small businesses will be excluded from the program as the March 31 PPP deadline approaches quickly, groups such as the American Bankers Association, the Credit Union National Association and the Independent Community Bankers of America, said in a letter to the House and Senate small business committees.
“As the authorization expires on March 31, 2021, we have serious concerns that many of these loans currently marked with a suspension code will remain pending until that date,” the groups wrote. We are also concerned that new loans uploaded to the SBA portal this month will be pending when the portal is closed. As a result, companies that should be eligible to receive PPP funds – including those in the hardest hit communities that may not have taken advantage of PPP last year – will be blocked and unable to access this much needed emergency capital. “
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