SBA Procedural Notice 5000-20038 — PPP Loan Forgiveness Procedures

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EXPIRES: 7-1-21 
 
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SBA Procedural Notice 
TO: All SBA Employees and Paycheck Protection 
Program Lenders 
SUBJECT: Procedures for Lender Submission of 
Paycheck Protection Program Loan Forgiveness 
Decisions to SBA and SBA Forgiveness Loan 
Reviews
CONTROL NO.: 5000-20038 
 
EFFECTIVE: July 23, 2020
 
The purpose of this Notice is to inform Paycheck Protection Program (PPP) Lenders of the 
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. 
Loan Forgiveness Process 
To receive PPP loan forgiveness, a borrower must complete and submit the Loan Forgiveness 
Application (SBA Form 3508, 3508EZ, or Lender equivalent) to its Lender (or the Lender 
servicing its loan).1  A borrower may submit a Loan Forgiveness Application before the end of 
the 8-week or 24-week covered period, provided that the borrower has used all of the loan 
proceeds for which the borrower is requesting forgiveness and the borrower’s loan forgiveness 
application accounts for any salary reductions in excess of 25 percent for the full covered period.  
The Lender of record must review the Loan Forgiveness Application in accordance with the 
requirements of Part III.2.a. of IFR #15 on SBA Loan Review Procedures and Related Borrower 
and Lender Responsibilities (85 FR 33010), as revised by IFR #20 on Revisions to Loan 
 
1 A borrower may submit a Loan Forgiveness Application to its Lender or the Lender that is 
servicing its loan.  The Lender that is servicing the loan may not be the Lender of record (i.e., the 
Lender that owns the loan).  The Lender of record is responsible for all required forgiveness 
actions and will receive the forgiveness payment from SBA.  Subsequent references to “Lender” 
in this Notice refer to the Lender of record. 

 
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EXPIRES: 7-1-21 
 
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete 
Must be accompanied by SBA Form 58 
Federal Recycling Program 
 Printed on Recycled Paper 
Forgiveness and Loan Review Procedures IFRs (85 FR 38304).  When a borrower submits SBA 
Form 3508 or Lender’s equivalent form, the Lender shall:  
 
1) confirm receipt of the borrower certifications contained in the SBA Form 3508 or 
Lender’s equivalent form;  
2) confirm receipt of the documentation the borrower must submit to aid in verifying payroll 
and nonpayroll costs, as specified in the instructions to the SBA Form 3508 or Lender’s 
equivalent form; 
3) confirm the borrower’s calculations on the borrower’s SBA Form 3508 or Lender’s 
equivalent form, including the dollar amount of the (A) Cash Compensation, Non-Cash 
Compensation, and Compensation to Owners claimed on Lines 1, 4, 6, 7, 8, and 9 on PPP 
Schedule A and (B) Business Mortgage Interest Payments, Business Rent or Lease 
Payments, and Business Utility Payments claimed on Lines 2, 3, and 4 on the PPP Loan 
Forgiveness Calculation Form, by reviewing the documentation submitted with the SBA 
Form 3508 or Lender’s equivalent form;  
4) confirm that the borrower made the calculation on Line 10 of the SBA Form 3508 or 
Lender’s equivalent form correctly, by dividing the borrower’s Eligible Payroll Costs 
claimed on Line 1 by 0.60.  
 
When the borrower submits SBA Form 3508EZ or Lender’s equivalent form, the Lender shall:  
1) confirm receipt of the borrower certifications contained in the SBA Form 3508EZ or 
Lender’s equivalent form;  
2) confirm receipt of the documentation the borrower must submit to aid in verifying payroll 
and nonpayroll costs, as specified in the instructions to the SBA Form 3508EZ or 
Lender’s equivalent form; 
3) confirm the borrower’s calculations on the borrower’s SBA Form 3508EZ or Lender’s 
equivalent form, including the dollar amount of the Payroll Costs, Business Mortgage 
Interest Payments, Business Rent or Lease Payments, and Business Utility Payments 
claimed on Lines 1, 2, 3, and 4 of the SBA Form 3508EZ or Lender’s equivalent form, by 
reviewing the documentation submitted with the SBA Form 3508EZ or Lender’s 
equivalent form; and 
4) confirm that the borrower made the calculation on Line 7 of the SBA Form 3508EZ or 
Lender’s equivalent form correctly, by dividing the borrower’s Eligible Payroll Costs 
claimed on Line 1 by 0.60.   
Providing an accurate calculation of the loan forgiveness amount is the responsibility of the 
borrower, and Lenders may rely on borrower representations.  Lenders are expected to perform a 
good-faith review, in a reasonable time, of the borrower’s calculations and supporting documents 
concerning amounts eligible for forgiveness.  If the Lender identifies errors in the borrower’s 
calculations or material lack of substantiation in the borrower’s supporting documents, the 

 
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EXPIRES: 7-1-21 
 
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete 
Must be accompanied by SBA Form 58 
Federal Recycling Program 
 Printed on Recycled Paper 
Lender should work with the borrower to remedy the issue.  The borrower shall not receive 
forgiveness without submitting all required documentation to the Lender.   
The Lender must complete the review of the application and issue a decision  to SBA, along with 
the required documents, not later than 60 days after receipt of a complete application from the 
borrower.  That decision may take the form of an approval (in whole or in part); denial; or (if 
directed by SBA) a denial without prejudice due to a pending SBA review of the loan for which 
forgiveness is sought.2  If the Lender determines that the borrower is entitled to forgiveness of 
some or all of the amount applied for under the statute and applicable regulations, the Lender 
must request payment from SBA at the time the Lender issues its decision to SBA.   
SBA will, subject to any SBA review of the loan or loan application, remit the appropriate 
forgiveness amount to the Lender, plus any interest accrued through the date of payment, not 
later than 90 days after the Lender issues its decision to SBA.  If applicable, SBA will deduct 
EIDL Advance amounts from the forgiveness amount remitted to the Lender as required by 
section 1110(e)(6) of the CARES Act.   
The Lender is responsible for notifying the borrower of the forgiveness amount paid by SBA to 
the Lender.  If the forgiveness amount paid by SBA is less than the amount in the forgiveness 
decision issued by the Lender to SBA, the Lender must also notify the borrower of the amount in 
the Lender’s forgiveness decision.  If only a portion of the loan is forgiven, or if the forgiveness 
request is denied, any remaining balance due on the loan must be repaid by the borrower on or 
before the maturity of the loan.  PPP Lenders are responsible for servicing PPP loans in 
accordance with SBA SOP 50 57, as amended.3  After submission of a forgiveness decision to 
SBA, the Lender must continue to service the loan as required.  
If a Lender denies a borrower’s application in full, the Lender must notify the borrower in 
writing that the Lender has issued a decision to SBA denying the application.  SBA reserves the 
right to review the Lender’s decision in its sole discretion.  Within 30 days of notice from the 
Lender, the borrower may notify the Lender that it is requesting that SBA review the Lender’s 
decision.  Within 5 days of receipt of the borrower’s request for review, the Lender must notify 
SBA of the request.  SBA will notify the Lender if SBA declines a request for review.  If SBA 
accepts a borrower’s request for review, SBA will notify the borrower and the Lender of the 
results of the review.  
 
2 If SBA has notified the Lender that SBA has commenced a loan review, the Lender shall not 
approve any application for loan forgiveness for such loan until SBA notifies the Lender in 
writing that SBA has completed its review. 
3 Because PPP loans are 7(a) loans, the SOP applies to the servicing of PPP loans, to the extent 
that the SOP is not superseded by or in conflict with PPP-specific requirements.  The SOP is 
located at:  https://www.sba.gov/sites/default/files/files/SOP_50_57_2_1.pdf. 

 
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EXPIRES: 7-1-21 
 
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete 
Must be accompanied by SBA Form 58 
Federal Recycling Program 
 Printed on Recycled Paper 
SBA has published detailed rules and guidance on PPP loan forgiveness and loan review 
procedures, including:  
• IFR #1 (85 FR 20811),  
• IFR #3 (85 FR 21747),  
• IFR #14 (85 FR 33004),  
• IFR #15 (85 FR 33010),  
• IFR #17 Revisions to IFR #1 (85 FR 36308), 
• IFR #19 Revisions to IFRs #3 and #6 (85 FR 36997),  
• IFR #20 Revisions to IFRs #14 and #15 (85 FR 38304),  
• numerous FAQs, and  
• the instructions to Form 3508 and the instructions to Form 3508 EZ. 
Lender Submission of Loan Forgiveness Decisions, Supporting 
Documentation, and Requests for Forgiveness Payments to SBA 
SBA has partnered with a financial services technology provider – Goldschmitt-CRI – to make 
available a secure SaaS platform (the PPP Forgiveness Platform) to accept loan forgiveness 
decisions, supporting documentation, and requests for forgiveness payments.  The PPP 
Forgiveness Platform is available only to PPP Lenders, not PPP borrowers.   
 
This platform makes available a user interface for Lenders to upload required data and 
documentation, monitor the status of the forgiveness request, and respond to SBA in case of an 
inquiry or if SBA selects the loan for review.  SBA will post a link to the PPP Forgiveness 
Platform on its website.  The PPP Forgiveness Platform will go live and begin accepting Lender 
submissions 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 (AOs) currently in the CAFS/ETRAN system will receive 
a welcome email from SBA (PPPForgivenessRequests@SBA.gov) with instructions on how to 
access this new platform.  If an AO does not receive a welcome email, it should contact SBA’s 
PPP Lender Hotline at 833-572-0502 for instructions.  AOs will automatically be empowered 
to create up to 10 additional users in the platform for purposes of submitting and monitoring 
forgiveness requests.  Detailed instructions for using the platform will be available upon login.  
This platform will also allow Lenders to monitor the status of forgiveness payments and support 
Lender reconciliation.  The Lender will use the platform to provide ACH credit information for 
the account where the Lender wishes to receive the PPP forgiveness payments.  The ACH credit 
information must be for an account owned by the Lender of record (as listed in the SBA ETRAN 
system).  SBA will not make any payments to Lender Service Providers or the Lender servicing 
the loan if that Lender is not the Lender of record.  If the ACH credit information or the routing 
number is invalid, the Lender will not receive a forgiveness payment. 
 
If the Lender of record authorizes an Agent or Lender Service Provider (as those terms are 
defined in 13 CFR 103.1) or the Lender servicing the loan (if not the Lender of record) to submit 

 
PAGE 5 of 8 
EXPIRES: 7-1-21 
 
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete 
Must be accompanied by SBA Form 58 
Federal Recycling Program 
 Printed on Recycled Paper 
any information or make any entries or certifications on the Lender of record’s behalf for any 
purpose through the PPP Forgiveness Platform or otherwise, the Lender of record acknowledges 
that the Agent, Lender Service Provider, or servicing Lender is acting within the scope of the 
Lender of record’s authority and the Lender of record acknowledges that it is responsible for all 
information submitted and entries and certifications made by such other person or entity. 
 
Lenders must provide a single point of contact and an email address for an AO who will be 
available to respond to SBA inquiries regarding the Lender’s submission and to work with SBA 
if the loan is selected for review.  If the Lender fails to provide a point of contact, all Lender 
submissions will be rejected and returned to the Lender.  SBA expects full cooperation from 
Lenders with respect to any SBA inquiries or loan reviews.  If a Lender fails to cooperate as 
required, SBA may reject the Lender’s submission and the Lender may not receive a forgiveness 
payment. 
 
How to Submit Loan Forgiveness Decisions, Supporting Documentation, and   
Requests for Forgiveness Payments 
 
Lenders may utilize the PPP Forgiveness Platform to submit forgiveness requests for individual 
PPP loans.  The PPP Forgiveness Platform also makes available Application Programming 
Interfaces (APIs) for multiple submissions using an automated method. Additional guidance on 
how to use the PPP Forgiveness Platform, including step-by-step instructions, will be published 
on the PPP Forgiveness Platform. 
Lender submissions may be rejected by an initial screening process in the PPP Forgiveness 
Platform, including if they are incomplete or contain errors.  If a Lender submission is rejected, 
the Lender will be notified by the PPP Forgiveness Platform. The Lender must then correct the 
submission and resubmit it to SBA.  Lender correction of a submission will restart the 90-day 
period for SBA to remit the payment. 
Lender Confirmation Required for PPP Forgiveness Submissions 
Lenders must confirm the following for each PPP forgiveness submission before SBA will 
accept the submission:  
1) this submission accurately reflects the Lender’s decision regarding the borrower’s loan 
forgiveness application;  
2) the information provided by the Lender to SBA with this submission accurately reflects 
the Lender’s records for the PPP loan;  
3) the Lender has made its decision in accordance with the requirements set forth in Part 
III.2.a. of the PPP Interim Final Rule on SBA Loan Review Procedures and Related 
Borrower and Lender Responsibilities, as amended;  
4) the PPP loan has not been cancelled or repaid; and  

 
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EXPIRES: 7-1-21 
 
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete 
Must be accompanied by SBA Form 58 
Federal Recycling Program 
 Printed on Recycled Paper 
5) the Lender has not issued a previous loan forgiveness decision to SBA for this PPP loan, 
unless this is a resubmission following a rejection or a reconsideration of a denial without 
prejudice.   
Lenders can use the SBA Forgiveness Platform to provide this confirmation when submitting 
requests.  This confirmation can also be provided via the Platform APIs.  
Documentation and Data Required to be Submitted When the Lender Issues 
its Decision to SBA 
When the Lender issues its decision to SBA, it must submit through the Forgiveness Platform the 
required items that follow. 
The Lender must check a box indicating the decision being issued to SBA.  The choices are as 
follows: 
1) Approved in Full – Lender approved in full the forgiveness amount requested by 
borrower and the forgiveness amount requested by Lender equals that amount.  
2) Approved in Part – Lender did not approve the full forgiveness amount requested by 
borrower and the forgiveness amount requested by Lender is less than the forgiveness 
amount requested by borrower.  
3) Denied – Lender denied the entire forgiveness amount requested by the borrower. 
4) Denied without Prejudice – Lender should use this status when an SBA loan review is 
pending at the time the borrower submits a loan forgiveness application.  
 
In all cases where Lenders select “Approved in Part”, the Lender must enter its own data for each 
line item for which it determined a different amount than the amount on the borrower’s loan 
forgiveness application.  SBA will use the line item amounts entered by the Lender to verify the 
calculations and facilitate the final forgiveness payment amount and associated interest 
calculation.  In addition, for borrower loan forgiveness applications submitted using the SBA 
Form 3508 or Lender’s equivalent form, the Lender must submit the following in the 
Forgiveness Platform:  
1) the PPP Loan Forgiveness Calculation Form (including the representations and 
certifications page of the application initialed, signed, and dated by an authorized 
representative of the borrower); 
2) PPP Schedule A; and  
3) the PPP Borrower Demographic Information Form (if submitted by the borrower).  
And, for borrower loan forgiveness applications submitted using the SBA Form 3508EZ or 
Lender’s equivalent form, the Lender must submit the following in the Forgiveness Platform:  
1) the SBA Form 3508EZ or Lender’s equivalent form (including the representations and 
certifications page of the application initialed, signed, and dated by an authorized 
representative of the borrower); and  

 
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EXPIRES: 7-1-21 
 
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete 
Must be accompanied by SBA Form 58 
Federal Recycling Program 
 Printed on Recycled Paper 
2) the PPP Borrower Demographic Information Form (if submitted by the borrower).  
If the Lender issues a decision to SBA determining that a borrower is not entitled to forgiveness 
in any amount, the lender must submit all of the above required documentation and data and 
provide SBA with the reason(s) for its denial. 
What Must a Lender Do When SBA Notifies the Lender that SBA is Initiating 
a Loan Review? 
SBA may review any PPP loan of any size at any time at its discretion.  If SBA undertakes such 
a review, SBA will notify the Lender via the PPP Forgiveness Platform and the Lender must 
notify the borrower in writing within five business days of receipt of notification. 
Within five business days of receipt of the notice of review, the Lender shall also submit via the 
PPP Forgiveness Platform the following documents:  
1) The Borrower Application Form (SBA Form 2483 or Lender’s equivalent form) and all 
supporting documentation provided by the borrower.  
2) The Loan Forgiveness Application (SBA Form 3508, 3508EZ, or Lender’s equivalent 
form), and all supporting documentation required to be submitted by the borrower to the 
Lender with the Loan Forgiveness Application, including payroll documentation, non-
payroll documentation, and full-time equivalent employee documentation, if applicable.4  
The Lender must also request that the borrower provide the Lender with the applicable 
documentation that the instructions to the Loan Forgiveness Application Form (SBA 
Form 3508, 3508EZ, or Lender’s equivalent form) instruct the borrower to maintain but 
not submit (documentation listed under “Documents that Each Borrower Must Maintain 
but is Not Required to Submit”).  The Lender must submit the additional documents 
received from the borrower to SBA within 5 business days of receipt from the borrower.  
3) A signed and certified transcript of account.  
4) A copy of the executed note evidencing the PPP loan.  
5) Any other documents related to the loan requested by SBA. 
 
If loan documentation submitted to SBA by the Lender or any other information indicates that 
the borrower may be ineligible for a PPP loan or may be ineligible to receive the loan amount or 
loan forgiveness amount claimed by the borrower, SBA will require the Lender to contact the 
 
4 The loan forgiveness application and supporting documentation must be submitted to SBA if 
the Lender has received the application from the borrower.  If the Lender receives the application 
from the borrower after it receives notice that SBA has commenced a loan review, the Lender 
shall transmit to SBA copies of the application and all supporting documentation provided by the 
borrower within five business days of receipt.  The Lender must also notify the borrower that the 
loan forgiveness application is denied without prejudice due to the pending SBA review, and 
notify SBA through the PPP Forgiveness Platform when that Lender decision is made. 

 
PAGE 8 of 8 
EXPIRES: 7-1-21 
 
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete 
Must be accompanied by SBA Form 58 
Federal Recycling Program 
 Printed on Recycled Paper 
borrower in writing to request additional information.  SBA may also request additional 
information directly from the borrower.  The Lender must provide any additional information 
provided to it by the borrower to SBA.  SBA will consider all information provided by the 
borrower in response to such an inquiry.  Failure to respond to SBA’s inquiry may result in a 
determination that the borrower was ineligible for a PPP loan or ineligible to receive the loan 
amount or loan forgiveness amount claimed by the borrower. 
What Happens When SBA Remits the Forgiveness Payment to the Lender? 
The Lender is responsible for notifying the borrower of remittance by SBA of the loan 
forgiveness amount (or that SBA has determined that no amount of the loan is eligible for 
forgiveness) and the date on which a borrower’s first payment is due, if applicable.    
May a Borrower Appeal SBA’s Determination that the Borrower is Ineligible 
for a PPP Loan or Ineligible for the Loan Amount or the Loan Forgiveness 
Amount Claimed by the Borrower? 
 
Yes.  SBA intends to issue an interim final rule addressing this process shortly. 
 
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local 
SBA Field Office. Local SBA Field Offices can be found at https://www.sba.gov/tools/local-
assistance/districtoffices. 
Jihoon Kim 
Director 
Office of Financial Program Operations

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