SBA launches tool to match underserved borrowers with PPP lenders
As time is running out for eligible entities to apply for Paycheck Protection Program (PPP) loans, the US Small Business Administration announced on Friday that it has relaunched its online Lender Match tool to help underserved and disadvantaged small businesses. connect with PPP lenders.
In a press release, the SBA described Lender Match as an additional resource for “small businesses affected by the pandemic that have not applied for or received an approved PPP loan to connect with lenders.” The SBA has also called on its network of lenders to prioritize underserved borrowers such as the socially and economically disadvantaged, ex-combatants and their spouses, women and rural communities.
Lender Match will provide online referrals connecting small businesses and nonprofits with a multitude of small lenders and those who specialize in serving borrowers in underserved and disadvantaged areas. Specifically, correspondence will be established with community development financial institutions (CDFI), minority depository institutions (MDI), certified development companies (CDC), agricultural credit system lenders and microlenders. The tool will match borrowers only with lenders who have less than $ 10 billion in assets.
Friday’s announcement comes 11 days before the June 30 deadline for PPP applications. Borrowers who enter their information into Lender Match will receive an email from the lenders matched with them in less than two business days. Borrowers will then be able to begin the application process directly from the email they receive.
PPP provides forgivable loans that qualified borrowers can use to cover payroll, mortgage interest, rent, and utilities. Congress has allocated $ 659 billion to the program, with more than $ 140 billion still available as of June 18.
Lender matching was the first launched in 2017 to connect small businesses with SBA lenders. The SBA suspended the program in March due to implementation work and an intense lending volume resulting from the passage of the $ 2 trillion CARES law on aid, relief and economic security. (CARES), PL 116-136, the legislation that created the PPP.
AICPA experts discuss the latest news on PPP and other small business support programs at a virtual weekly town hall. The webcasts, which offer CIP credits, are free to AICPA members. Go to AICPA Town Hall Series web page for more information and to register.
The AICPA SBA Paycheck Protection Program Resource Page houses resources and tools produced by the AICPA to help cope with the economic impact of the coronavirus.
For more information and stories on the coronavirus and how CPAs can handle the challenges of the outbreak, visit JofA‘s coronavirus resource page Where subscribe to our email alerts for the latest PPP news.
– Jeff drew ([email protected]) is a JofA senior editor.