CUNA and other organizations have continuing concerns with the Paycheck Protection Program (PPP) loan submission process and E-TRAN access issues, the groups wrote to Jovita Carranza, administrator of the Small Business Administration (SBA) Tuesday. The organizations which helped more than 1.7 million businesses get loans during the first round of PPP funding, note they are expressing these concerns in order to help the small businesses impacted by the pandemic to succeed.
After running out of the initial $349 billion in funds in the program’s first two weeks, it was reauthorized last week with an additional $310 billion, starting Monday morning.
“Unfortunately, with the start of the second round of funding many lenders are having significant problems submitting loan applications into the SBA’s system, preventing them from delivering this critical financial assistance to small businesses that desperately need it. Quite simply, it is taking too long to submit loans and get these funds where they need to go,” the letter reads. “We respectfully request that you help us resolve these access issues, or at least explain to our members what is causing the problem.
“Additionally, we encourage transparency to help us explain to our members what is causing the problem and how it will be resolved,” it adds. “If the pace and performance of the E-Tran system cannot be improved, then we ask that you share that information with the public to help manage expectations for all of the small businesses still counting on PPP for a lifeline… we have found the lack of transparency and timely guidance on the PPP process impedes the funding of loans to small businesses in need. The SBA should continue to collaborate with the Treasury to provide timely and consistent guidance to financial institutions as they work to provide their communities with this critical assistance.”
CUNA and the organizations add that the “sooner this program functions properly, the sooner more small businesses are able to receive the assistance they critically need.”