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.
