PPP Lenders May Submit Forgiveness Applications Starting 8/10/2020
The SBA (Small Business Administration) issued the attached procedural notice (HERE) regarding the PPP (Paycheck Protection Program) lender’s loan forgiveness process. Beginning August 10, 2020, the SBA will begin to accept PPP forgiveness applications from a lender. The August 10th date is subject to extension if any new legislative amendments to the forgiveness process are adopted that require a change to the SBA’s platform.
The online submission is only available to a PPP lender and not to a PPP borrower. The lender performs a good-faith review of the borrowers’ calculations and supporting documents. If the lender finds an error, it will work with the borrower to correct the error before submitting the forgiveness application to the SBA. The lender must submit required certifications and supporting documentation along with their decision to approve, in whole or in part, or deny the borrower’s application.
After submission, the SBA has up to 90 days to process the application and to remit to the lender the appropriate forgiveness amount, with interest, through the date of payment.
If any amount remains unforgiven, the borrower begins equal monthly payments of principal and interest.
If the SBA determines to review a loan, it will notify the lender and the lender has 5 business days to notify the borrower. Additional information may be requested by the SBA. A borrower has 30 days to appeal a denial and once a lender receives an appeal, it has 5 days to notify the SBA.
The August 10th date is not a deadline for a PPP borrower to submit their application and supporting materials to their lender. A borrower may submit a loan forgiveness application before the end of the 8-week or 24-week covered period if the borrower has used all of the loan proceeds for which the borrower requests forgiveness.