The Small Business Administration today issued a procedural notice providing detailed instructions for Paycheck Protection Program lenders on the PPP forgiveness process. The notice outlines processes for submitting decisions on PPP borrower loan forgiveness applications to SBA, requesting payment of the forgiveness amount determined by the lender, SBA loan forgiveness reviews and payment of the loan forgiveness amount determined by SBA.
Lenders may begin submitting their loan forgiveness decisions to SBA’s secure PPP Forgiveness Platform on August 10, 2020, subject to extension if any new legislative amendments to the forgiveness process necessitate changes to the system. All PPP Lender Authorizing Officials currently registered in the E-Tran system will receive a welcome email from SBA with instructions on accessing the platform. AOs who do note receive a welcome email should contact SBA’s PPP Lender Hotline at 833-572-0502 for more information.
When submitting a forgiveness decision to SBA, lenders must confirm:
- That the submission accurately reflects the lender’s decision regarding the borrower’s forgiveness application
- That the submission accurately reflects the lender’s records for the PPP loan
- That the lender has made its decision in accordance with previously issued SBA guidelines
- That the PPP loan has not been canceled or repaid; and that the lender has not issued a previous loan forgiveness decision to SBA for the same PPP loan, unless it is a resubmission following a rejection or a reconsideration of a denial without prejudice.
Lenders are responsible for notifying the borrower of a remittance by SBA of the loan forgiveness amount and the date on which a borrower’s first payment is due, if applicable. SBA also said it will soon issue an interim final rule addressing how borrowers can appeal SBA’s determination on PPP loan or loan forgiveness eligibility.