SBA Procedural Notice 5000-20074: Modifications to SBA Forms 3506, 3507 and 750 CA (PPP, effective January 6, 2021)

Summary

SBA Procedural Notice, Control No. 5000-20074, effective January 6, 2021, to all SBA employees and Paycheck Protection Program lenders on Modifications to SBA Forms 3506, 3507 and 750 CA (for purposes of PPP only). It says the Economic Aid Act, signed December 27, 2020, extended SBA's authority to guarantee PPP loans through March 31, 2021 and provided authority for second draw loans. It modifies the lender forms for previously approved lenders by extending the termination date from August 9, 2020 to April 1, 2021, updating statutory references, and requiring the fixed interest rate to be calculated on a non-compounding, non-adjustable basis. The notice is issued over the name of Susan E. Streich, Director, Office of Credit Risk Management.

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“SBA Procedural Notice 5000-20074: Modifications to SBA Forms 3506, 3507 and 750 CA (PPP, effective January 6, 2021).” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-the-treasury-guidance-on-modifications-to-sba-forms-3506-760c97187b/, SHA-256 db81cf30628d9fca1bd896a56a1fc47b645952870a46ed1c7dc72761488ea5a0.

Full text

                        SBA Procedural Notice

TO: All SBA Employees and Paycheck Protection                                         CONTROL NO.: 5000-20074
Program Lenders                                                                       EFFECTIVE: January 6, 2021

SUBJECT: Modifications to SBA Forms 3506,
3507 and 750 CA (for purposes of PPP only)



The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (“Economic Aid
Act”) was signed into law by the President on December 27, 2020, extending SBA’s authority to
guarantee initial Paycheck Protection Program (PPP) loans through March 31, 2021 and
providing SBA authority to guarantee PPP second draw loans through March 31, 2021
(collectively, referred to as “PPP Loans”).

Any Lender that was approved to make PPP Loans pursuant to a SBA Form 35061, 35072 or 750
CA3 (when used solely for the purpose of Lenders participating in PPP) will be deemed by SBA
to have agreed to the modified terms and conditions to such forms as described in this Notice if
the Lender makes a PPP Loan on or after December 27, 2020. All such previously-approved
Lenders will not be expected to sign an updated version of the SBA Form; however, all new PPP
Lenders will be required to sign the applicable revised SBA Form.

This Notice modifies SBA Form 3506, SBA Form 3507, and SBA Form 750 CA (for purposes of
PPP only) for previously-approved Lenders as follows:

    -   Extends the termination date set forth in Section 8 or Section 19 in each such form (as
        applicable) from “August 9, 2020” to “April 1, 2021.” Participating PPP Lenders with
        such agreements, as well as 7(a) Lenders authorized to make PPP Loans, may continue to
        make PPP Loans until 11:59 pm on March 31, 2021.




1
  SBA Form 3506 (CARES Act Section 1102 Lender Agreement).
2
  SBA Form 3507 (CARES Act Section 1102 Lender Agreement – Non-Bank and Non-Insured Depository
Institution Lenders).
3
  SBA Form 750 CA (U.S. Small Business Administration, Community Advantage Pilot Program Loan Guaranty
Agreement, Deferred Participation).
PAGE 1 of 2                                                                                   EXPIRES: 1-1-22
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
   -   Modifies the statutory references in the forms to reflect the newly enacted Economic Aid
       Act, including sections 7(a)(36), 7(a)(37), and 7A of the Small Business Act.

   -   Modifies the forms (as applicable) to require the fixed rate of interest on PPP Loans to be
       calculated on a non-compounding, non-adjustable basis and conforms the forms to
       existing PPP eligibility requirements.


Revised SBA Forms 3506, 3507 and 750 CA for new Lenders have been issued and are available
at www.sba.gov/ppp

If you have any questions, please contact Eddie Ledford at edward.ledford@sba.gov.



Susan E. Streich
Director, Office of Credit Risk Management




PAGE 2 of 2                                                                                 EXPIRES: 1-1-22
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

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Original: home.treasury.gov