SBA Updates Guidance on PPP Whole Loan Sales

The Small Business Administration today extended its guidance on how lenders may sell whole Paycheck Protection Program loans. The SBA’s previous guidance on whole loan sales of PPP loans expired on May 1, and the new guidance been back-dated to take effect on April 30, 2021.

The guidance reaffirmed that lenders participating in the PPP may sell all of their interest in PPP loans to other participating lenders, and that SBA’s prior written consent is not required for these sales. SBA emphasized that today’s procedural notice “applies to lender merger and acquisition transactions where the lender has PPP loan(s) in its portfolio.”

The notice also covers obligations of purchasing and originating lenders, required documentation and required notice to—but not approval by—SBA.