Dear Clients, Business Associates and Friends:
On August 10, 2020, the Small Business Administration expects to launch its Paycheck Protection Program portal through which lenders will seek approval of their PPP loan forgiveness decisions, according to a procedural notice issued by the agency on Thursday, July 23.
The SBA plans to email instructions for using the portal to lenders before the launch. Lenders will be able to electronically submit applications individually, or in batches using an application programming interface that will be made available on the portal.
A number of trade groups, including the American Bankers Association, Consumer Bankers Association and National Association of Federally-Insured Credit Unions, said Friday they were still reviewing the document.
The SBA released its initial forgiveness application May 15 and followed up with a shorter version about a month later. Until the procedural notice, the agency had neither explained how lenders could transmit completed applications to the agency, nor indicated how closely they were expected to review them.
The SBA’s instructions make it clear that calculating how much of a loan can be forgiven is the borrower’s responsibility, either on the longer SBA Form 3508 or the shorter 3508EZ. At the same time, the instructions state lenders “are expected to perform a good-faith review in a reasonable time” of the borrower’s calculations and supporting documents.
The SBA allows lenders 60 days to review applications. It says it will provide payment within 90 days of receiving a forgiveness application that it approves.
The procedural notice states the lender is responsible for notifying the borrower of any forgiveness amount the SBA remits. If a lender denies a borrower’s forgiveness application, the borrower has 30 days to appeal. Once a lender receives an appeal, it has five days to transmit it to the SBA.
For more information regarding the program details, click on the link below:
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
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