PPP PROCESSING DELAYS CONTINUE

Mark Campanale Government Relations Updates, Members Only

Some pawnbrokers report having received PPP loan forgiveness with no problems, while others are still waiting. One pawnbroker recently received a request from their bank of additional information needed for the SBA such as…1) Description of the business activities; 2) Tax Return; 3) Company marketing information. Also reported was a SBA ‘Hold Code’ notation “NAICS 522-Credit Intermediation-Borrower appears to be engaged in lending-Potential eligibility issue.”  

The SBA has forgiven over 30% of the 5.1 million PPP loans that were approved in 2020. The wait for the rest of these loans to be acted upon for borrowers also delays the payout of origination fees to the banks. It is not surprising that large loans of $2 million or more are receiving extra scrutiny considering the controversy during PPP’s early days when large businesses and publicly traded companies received funds.  

The change in SBA leadership, including a new Administrator and other top officials still waiting for confirmation, may also be contributing to delays. Read more… 

https://www.journalofaccountancy.com/news/2021/feb/ppp-application-processing-delays-continue.html