SBA: PPP Loan Sales Retain Guaranty, Do Not Require SBA Approval

Sales of Paycheck Protection Program loans into the secondary market do not require Small Business Administration approval, the SBA and Treasury Department said in a Friday update to their frequently asked questions. A PPP loan sold into the secondary market retains the 100% SBA guaranty, the FAQ clarified.

The FAQ also reiterated guidance in the agency’s April 2 interim final rule that a PPP loan may be sold into the secondary market at any time after it is fully disbursed and that it may be sold at a premium or at a discount to par value.