The Small Business Administration tonight issued an updated procedural notice regarding the reporting process through while lenders report on Paycheck Protection Program loans and collect processing fees. The guidance addresses fees for new first-draw PPP loans and second-draw PPP loans and outlines reporting requirements for lenders.
For first-draw PPP loans made on or after Dec. 27, 2020, lenders will receive processing fees in the following amounts: 50% or $2,500, whichever is less, for loans of not more than $50,000; 5% for loans of more than $50,000 and not more than $350,000; 3% for loans of more than $350,000 and less than $2 million; and 1% for loans of at least $2 million.
For second-draw PPP loans, lenders will receive a 50% processing fee or $2,500, whichever is less, for loans of not more than $50,000; a 5% processing fee for loans of more than $50,000 and not more than $350,000; and a 3% processing fee for loans above $350,000.
Lenders should use SBA Form 1502 to report fully disbursed loans to SBA within 10 calendar days after the disbursement of a PPP loan.
SBA also announced that it will begin remitting reconciliation payments beginning Feb. 9 through Feb. 19 for any with an SBA forgiveness payment that was reduced by the amount of an Economic Injury Disaster Loan advance.
In a communication sent directly to lenders earlier today, SBA noted that “the amount of the reconciliation payment will be equal to the previously-deducted EIDL advance amount, plus interest through the remittance date. SBA will use the interest accrual method currently identified in the Forgiveness Platform.”
SBA added that lenders must notify borrowers of the reconciliation payment, and that they are responsible for re-amortizing the loan. Lenders must also notify the borrower of either the amount of the next payment due, or that the loan has been paid in full.