SBA Releases Revisions for Hold Code & Check Error Procedures
For many weeks, Texas banks and banks across the nation have been waiting for SBA to provide relief on hold codes and error messages. Yesterday, the SBA released a “Second Notice of Revised Procedures for Addressing Hold Codes and Compliance Check Error Messages on PPP Loans.” It provides revised guidance to SBA Procedural Notice 5000-20092 and includes an update to the lender certification process.
Under the newly issued procedural notice, SBA clarified that the borrower must certify the information used to resolve the hold code or error message. Specifically, lenders may resolve certain hold codes and error messages “by obtaining a written borrower certification along with supporting documentation of the type identified for each Hold Code or Compliance Check Error Message in the First Revised Hold Code Notice.” Once obtained, “the Lender may execute the updated certification within the Platform,” SBA said. “The Lender must retain the borrower’s written certification and supporting documentation in its file and must provide them to SBA as indicated in the Lender Certification.” Once the process is complete, the PPP platform will “automatically move the loan guaranty application to the next stage of loan processing.”
See the update HERE.