To try and speed the processing of much-needed relief loans under the federal Paycheck Protection Program (PPP), the Small Business Administration (SBA) just issued a fresh interim final rule as part of ongoing efforts to tweak the balky but much-needed program.
The rule requires lenders to make a one-time, full disbursement of PPP funds within 10 calendar days of a loan being approved. A loan is officially considered approved when it receives an SBA loan number. If the 10th day should fall on a weekend or federal holiday, the disbursement deadline is bumped to the next business day.
For all SBA-approved loans that have not yet had their funds disbursed, the 10-day period is considered to have begun yesterday, Tuesday April 28. Banks have complained that the SBA’s processing system for PPP loans is responsible for the bottleneck in getting funds released, saying they are having trouble getting applications accepted by the SBA system.
Sean’s takeaways
The rule still leaves borrowers responsible for delays; the SBA says that lenders are not responsible for delays disbursement delays caused by borrowers who don’t supply required loan documentation on time, including signed promissory notes. If a borrower fails to provide requirement documentation within 20 days of loan approval, the loan will be cancelled.
What to do next…
- If you need help with an audit appeal or regulatory compliance concern, contact us at (800) 635-4040 or via email at [email protected].
- Read more about our: Total Compliance Solution
Why do thousands of providers trust DoctorsManagement to help improve their compliance programs and the health of their business?
Experienced compliance professionals. Our compliance services are structured by a chief compliance officer and supported by a team that includes physicians, attorneys and a team of experienced auditors. The team has many decades of combined experience helping protect the interests of physicians and the organizations they serve.
Quality of coders and auditors. Our US-based auditors receive ongoing training and support from our education division, NAMAS (National Alliance of Medical Auditing Specialists). All team members possess over 15 years of experience and hold both the Certified Professional Coder (CPC®) as well as the Certified Professional Medical Auditor (CPMA®) credentials.
Proprietary risk-assessment technology – our auditing team uses ComplianceRiskAnalyzer(CRA)®, a sophisticated analytics solution that assesses critical risk areas. It enables our auditors to precisely select encounters that pose the greatest risk of triggering an audit so that they can be reviewed and the risk can be mitigated.
Synergy – DoctorsManagement is a full-service healthcare consultancy firm. The many departments within our firm work together to help clients rise above the complexities faced by today’s healthcare professionals. As a result, you receive quality solutions from a team of individuals who are current on every aspect of the business of medicine.
