The Small Business Administration (SBA) has ensured that it is taking steps to improve the “first draw” Payment Protection Program (PPP), so as to provide small businesses with increased time to access the program’s funds.
These first draw loans consist of firms that did not receive funding from the program last year during its first two rounds.
According to the agency, the Biden administration is focused on providing the relief funds to small businesses across the country, in turn keeping companies trading and millions in employment.
Concerns have been raised as anomalies in the form of data mismatches and eligibility concerns accounted for 4.7% of the initial draw’s submitted data.
However, the SBA has claimed it is working alongside Biden’s newly elected administration to “identify immediate solutions to address eligibility, compliance, integrity, and promote transparency”.
Despite the promises, the program has so far caused many fraud-related challenges to the SBA, as legitimate businesses faced difficulties receiving their support while fraudsters mopped up through fake companies.
Tami Perriello, acting administrator at the body, said: “Prior to this newest PPP round, the SBA supported 5.2 million PPP loan borrowers, providing more than $525 billion in economic relief to small businesses and other eligible entities.
“The agency is committed to making sure compliance checks are executed on the front-end. The SBA is also committed to addressing issues more efficiently moving forward, to ensure fair and equitable access to small businesses in every community.”