SBA Procedural Notice — Control No. 5000-809631, All SBA Employees and Paycheck Protection Program Lenders
Summary
An SBA Procedural Notice, Control No. 5000-809631, effective April 20, 2021, addressed to all SBA employees and Paycheck Protection Program lenders, with the subject Updated Notice on First Draw Paycheck Protection Program Loan Increases After Enactment of the Economic Aid Act. It recalls that on January 13, 2021 SBA issued Procedural Notice 5000-20076 to provide procedures for reapplications or requests for increases for certain First Draw PPP Loans approved on or before August 8, 2020. It states that the PPP Extension Act of 2021, signed into law on March 30, 2021, extended SBA's authority to guarantee First Draw and Second Draw PPP Loans.
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- Department Of The Treasury Procedural Notice Updated Ppp Loan Increases For Extension Act
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- Department Of The Treasury Procedural Notice Updated Ppp Loan Increases For Extension Act Home Treas 9A8Fbe4784
Cite this document
“SBA Procedural Notice — Control No. 5000-809631, All SBA Employees and Paycheck Protection Program Lenders.”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-the-treasury-procedural-notice-updated-ppp-loan-increases-for-extension-act-home-treas-9a8fbe4784/
, SHA-256 274ec72dbf30e0237ff613b751eed3ade29feff3fd894b8d3ab21f0b42b58661.Full text
SBA Procedural Notice
TO: All SBA Employees and Paycheck Protection CONTROL NO.: 5000-809631
Program Lenders
SUBJECT: Updated Notice on First Draw EFFECTIVE: April 20, 2021
Paycheck Protection Program Loan Increases After
Enactment of the Economic Aid Act
On January 13, 2021, SBA issued Procedural Notice 5000-20076, First Draw Paycheck
Protection Program Loan Increases After Enactment of the Economic Aid Act (“EAA Loan
Increases Notice”). The purpose of the EAA Loan Increases Notice was to provide procedures
for reapplications or requests for increases for certain First Draw PPP Loans that were approved
on or before August 8, 2020.
The PPP Extension Act of 2021 (“Extension Act”) (Pub. L. 117-6), signed into law by the
President on March 30, 2021, extended SBA’s authority to guarantee First Draw PPP Loans and
Second Draw PPP Loans (collectively, “PPP Loans”) through June 30, 2021. The Extension Act
contains an important restriction, which provides that from June 1, 2021 through June 30, 2021,
SBA shall not accept new PPP Loan guaranty applications from Lenders and shall only process
PPP Loan guaranty applications submitted by Lenders to SBA before June 1, 2021. This
Updated Notice modifies the EAA Loan Increases Notice to reflect the Extension Act. Any
provisions of the EAA Loan Increases Notice that are not modified by this Updated Notice
remain in effect.
Increases on First Draw PPP Loans approved on or before August 8, 2020 to Eligible
Partnerships, Seasonal Employers, and Farmers and Ranchers
Any request for an increase on a First Draw PPP Loan approved on or before August 8, 2020 and
for which SBA has not remitted a forgiveness payment to the Lender on that loan, to an eligible
partnership, seasonal employer, or a farmer or rancher must be submitted electronically in E-
Tran by the Lender of Record on or before May 31, 2021, and any such request is subject to the
availability of funds.
PAGE 1 of 3 EXPIRES: 4/1/22
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
Reapplications by Eligible Borrowers that Fully Repaid a First Draw PPP Loan before
December 27, 2020
For reapplications by eligible PPP Borrowers that fully repaid their First Draw PPP Loan before
December 27, 2020, Lenders must submit the new loan guaranty application in the Paycheck
Protection Platform by 11:59 pm EDT on May 31, 2021, and any such reapplications are subject
to the availability of funds.
Re-disbursements to Eligible Borrowers that Returned Part of a First Draw PPP Loan
before December 27, 2020
Any re-disbursement (as described in paragraph 2 beginning on page 4 of the EAA Loan
Increases Notice) to a PPP Borrower that returned part of First Draw PPP Loan before December
27, 2020, where SBA has not remitted a forgiveness payment to the Lender on that loan, must be
reported by the Lender on a 1502 report on or before May 31, 2021, and any such re-
disbursement is subject to the availability of funds.
Increases for Eligible Borrowers that did not accept the Full Amount of a First Draw PPP
Loan for which they were Approved on or before August 8, 2020
If a PPP Borrower did not accept the full amount of the First Draw PPP Loan for which they
were approved on or before August 8, 2020, the Lender did not process a decrease of the loan in
E-Tran, and SBA has not remitted a forgiveness payment to the Lender on that loan, any
disbursement of an increased amount up to the original approved amount must be reported by the
Lender on a 1502 report on or before May 31, 2021, and any such disbursement is subject to the
availability of funds.
If a PPP Borrower did not accept the full amount of the First Draw PPP Loan for which they
were approved on or before August 8, 2020, the Lender processed a decrease of the loan in E-
Tran, and SBA has not remitted a forgiveness payment to the Lender on that loan, the Lender of
Record may process an increase on the loan up to the original approved amount by submitting
the request for an increase electronically in E-Tran on or before May 31, 2021, and any such
request is subject to the availability of funds.
Unresolved Borrowers
If the First Draw PPP Loan approved on or before August 8, 2020 has a Hold Code, the Lender
of Record will receive notification from SBA when the Lender submits a request for an increase
of the First Draw PPP Loan or submits a reapplication for a First Draw PPP Loan. If the Lender
receives notification of the Hold Code, the Lender will not be able to process an increase on the
First Draw PPP Loan, nor will the Lender be able to obtain an SBA loan number on a First Draw
PPP Loan reapplication. Hold Codes must be resolved in accordance with Procedural Notice
5000-808216, Second Notice of Revised Procedures for Addressing Hold Codes and Compliance
Check Error Messages on PPP Loans, issued on March 29, 2021. If a Lender submits a request
for an increase or a reapplication before June 1, 2021 and the First Draw PPP Loan has a Hold
PAGE 2 of 3 EXPIRES: 4/1/22
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
Code, the Hold Code must be resolved and the request for increase or reapplication must be
processed by 11:59 pm EDT on June 30, 2021, and is subject to the availability of funds.
All dates in this Updated Notice are subject to the availability of funds and will change if funds
are no longer available. SBA will be amending the Interim Final Rule on the Paycheck
Protection Program as Amended by the Economic Aid Act, 86 FR 3692 (January 14, 2021), to
reflect the date change for loan increases as a result of the Extension Act.
Questions
Lenders may call the Lender Hotline at (833) 572-0502 for live assistance regarding Paycheck
Protection Platform access and support, policy questions and procedures, and Capital Access
Financial System (CAFS) and SBA’s Electronic Transmission (E-Tran) systems support.
Lenders may also direct general PPP forgiveness questions to PPPForgivenessRequests@sba.gov
and requests for advanced technical support, API support and UAT error support, to
developer@ussbaforgiveness.com.
Requests for assistance on SBA Paycheck Protection Platform navigation and platform user
experience issues may be sent to help@ussbaforgiveness.com.
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local
SBA Field Office.
Dianna L. Seaborn
Director
Office of Financial Assistance
PAGE 3 of 3 EXPIRES: 4/1/22
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
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