SBA tells lenders to withdraw unapproved PPP loans ahead of deadline

The Small Business Administration is asking Paycheck Protection Program lenders to withdraw any application that has not yet been approved so that small businesses can apply elsewhere.

The SBA said that if lenders do not remove their loans, the agency will remove them on May 17, 2021, according to a message sent to lenders by the agency’s Office of Capital Access, which oversees the program. The move is intended to give small businesses time to apply for a PPP loan anew with a community financial institution, which are allowed to keep making loans under a multibillion dollar set aside reserved for small lenders such as Community Development Financial Institutions and Minority Deposit Institutions.

Small businesses have until May 31 to apply for a PPP loan with the SBA, which has until the end of June to approve any such loans.

Read the full story on cleveland.com’s sister site, Cleveland Business Journal.