February 9, 2021
SBA Hot Topic Tuesday – How to Resolve PPP Hold Codes
According to a recent poll conducted during the Coleman Report Live daily show, most (72%) PPP lenders still do not know how to resolve a hold on a First Draw PPP loan. As a result, 85% of PPP lenders have unresolved holds that are preventing their borrowers from getting approved for a Second Draw loan.
To make the process easier to understand, the SBA has instructed PPP lenders to take the following steps:
Step 1: Find out if a loan has a hold on it by navigating to the “AllLoan Requests” screen in the PPP Platform– a status of “Further Research Required” indicates that the Borrower has a hold code on their First Draw PPP Loan.
Step 2: Click on the Borrower’s name to view details about the hold.
Step 3: Review the hold code(s) listed in the Platform message.
Step 4: Open a Proactive Hold Review for this loan by clicking the hyperlink in the Platform message.
Step 5: Upload the relevant documentation needed to clear the hold code. Once uploaded, documents will save automatically to the loan record.
Step 6: Click “Submit” to send documents back to the SBA for review.
To learn more about the 49 different hold codes and the documentation needed to resolve them, sign up for Coleman’s webinar on Solving PPP Loan Hold Codes, which will be held on Thursday, February 11, 2021, at 2:00 PM Eastern. All webinar participants will receive a complimentary copy of our recently released PPP Hold Codes Guide which Includes PPP hold code statistics, an introduction to hold codes, detailed instructions on how to clear hold codes, a list of hold codes along with their meaning, and SBA resources.