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With the Paycheck Protection Program scheduled to end next week, the U.S. Small Business Administration has launched an online tool to help small businesses find lenders.
The new tool, called Lender Match, will connect small businesses and nonprofits with certain lenders, including banks and credit unions with less than $10 billion in assets and Community Development Financial Institutions (CDFIs).
Since the early days of the PPP, community advocates have criticized the program for leaving out small businesses that did not have banking relationships or the resources for completing the loan application.
PPP guidelines had called for lenders to take a first-come, first-served approach to the program when it launched in April, even though the CARES Act had specified that small businesses in underserved and rural markets should be prioritized in the program.
Along with smaller banks and CDFIs, Lender Match will connect businesses and nonprofits with Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), Farm Credit System lenders and microlenders.
“The SBA is focused on assisting eligible borrowers in underserved and disadvantaged communities and connecting them with forgivable PPP loans, especially before the June 30, 2020, application deadline,” SBA Administrator Jovita Carranza said in a statement. “As communities begin to carefully reopen across the country, there are still many more opportunities to provide this assistance to businesses who have yet to access these forgivable loans. SBA is utilizing these partnerships with CDFIs, MDIs, CDCs, Farm Credit System lenders, Microlenders and many other participating small asset lenders to ensure that access to this emergency funding reaches the most small businesses and their employees in need – a key priority for President Trump.”
To use the tool, businesses and nonprofits will enter their information into the Lender Match platform, and the borrower will receive an email within two business days from lenders who have been matched with them. The borrower will see lenders’ requests for them to begin an application, which can happen directly from the email.
After the PPP ends on June 30, Lender Match will be open to all SBA lenders, including banks with more than $10 billion in assets. The tool will be used for the SBA’s other products, including 7(a), 504, Microloans, and Community Advantage loans. The tool is not used for Economic Injury Disaster Loans.
