The Small Business Administration tonight issued an update to lenders clarifying that the maturity of all Paycheck Protection Program loans approved on or after June 5, 2020 will be for five years in accordance with the recently enacted PPP flexibility law. Any loans that were approved or funded prior to that date may be extended if the lender and borrower mutually agree to a five-year maturity. SBA said it would formally codify these changes in forthcoming guidance.
In addition, SBA provided tips for financial institutions to ensure they receive their lender processing fees. To receive the fee, lenders should submit Form 1502 in accordance with a previously issued procedural notice, ensure their ACH information is correctly reflected in the Fiscal Transfer Agent Lender Portal and check the 1502 dashboard frequently for any errors.
SBA directed lenders with questions on submitting 1502 reports to contact [email protected]. Lenders with questions on setting up a CAFS account should email [email protected]. All other PPP-related questions should be directed to [email protected].
