SBA Notice 5000-20036: Updated PPP Lender Processing Fees
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Cited in: Dianna L. Seaborn
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SBA Procedural Notice
TO: All SBA Employees and Paycheck Protection CONTROL NO.: 5000-20036
Program Lenders
EFFECTIVE: July 13, 2020
SUBJECT: Updated Paycheck Protection Program
Lender Processing Fee Payment and 1502
Reporting Process
The purpose of this Notice is to update SBA Procedural Notice 5000-20028, effective May 21,
2020, which informs Paycheck Protection Program (PPP) Lenders of the reporting process
through which PPP Lenders will report on PPP loans and collect the processing fee on fully
disbursed loans that they are eligible to receive.
What is the PPP processing fee that SBA will pay to Lenders?
As set forth in the initial PPP Interim Final Rule, SBA will pay Lenders fees for processing PPP
loans in the following amounts:
• 5 percent for loans of not more than $350,000;
• 3 percent for loans of more than $350,000 and less than $2,000,000; and
• 1 percent for loans of at least $2,000,000.
Under 15 U.S.C. § 636(a)(36)(P), the fee is based on the balance of the PPP loan outstanding at
the time of full disbursement of the loan.
How can Lenders request payment of PPP processing fees?
When a PPP Lender successfully reports to SBA that a loan has been fully disbursed, SBA will
initiate the process of paying the PPP processing fee that the PPP Lender is eligible to receive.
Lenders will use an SBA Form 1502 (1502 report) to report fully disbursed loans to SBA (the
process of which is outlined in this Notice below). SBA began accepting 1502 reports on fully
disbursed or cancelled PPP loans on May 22, 2020.
Additionally, in the Lender’s Fiscal Transfer Agent (FTA) Lender portal, the Lender must have
provided ACH credit information for an account owned by the Lender and must make a one-time
confirmation that all PPP loans for which the Lender will be requesting a processing fee have
been fully disbursed on the disbursement dates and in the loan amounts reported.
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Upon receipt of a complete set of SBA Form 1502 data, SBA will:
• Confirm that no previous request has been made for a processing fee on the loan, and
no processing fee payment has been made previously by SBA on the loan.
• Confirm that the disbursed amount reported on the 1502 report matches the approval
amount in E-Tran.
• Calculate the processing fee owed based on the final fully disbursed amount entered by
the Lender.
• Submit the fee calculated by SBA to the Lender using the ACH credit information
provided by the Lender.
How do Lenders create an account (i.e., enroll) in the FTA’s Lender Portal?
Before Lenders can receive a PPP processing fee or begin monthly loan reporting, they must
establish a Lender portal account with the FTA to access the 1502 Dashboard.
Existing SBA Lenders with SBA Form 750 agreements will access the 1502 Dashboard with
their current FTA Lender portal account. Lenders must use separate 1502 reports for PPP
loans and regular 7(a) loans.
PPP Lenders who do not already have an account with the FTA can enroll by sending an email to
Enrollment@colsonservices.com that contains the following:
• Name of Institution;
• At least two of the following:
o E-Tran Main Location ID (CAFS Location ID under which loans were
originated);
o One of SBA’s PPP GP loan numbers; and
o Colson Lender ID (if known);
• Individual user contact information:
o Name;
o Email address; and
o Phone number.
Lender Service Providers: Lender Service Providers (LSPs) providing services for PPP
Lenders under a reviewed LSP agreement who do not already have an account with the FTA can
enroll by sending an email to Enrollment@colsonservices.com that contains the following:
• Name of LSP;
• LSP CAFS Partner ID;
• Individual user contact information:
o Name;
o Email address; and
o Phone number;
For each bank partner, provide the information below:
• Bank partner’s information:
o Bank name;
o E-Tran Main Location ID
• One of SBA’s PPP GP loan numbers;
• Colson Lender ID (if known);
• Bank Authorizing Official
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o Name;
o Email address; and
o Phone number.
Upon receipt of a complete enrollment email, the FTA will send login credentials consisting of a
1502 Dashboard User ID and Access Code. The User ID and Access Code will be sent in
separate e-mails.
Once the Lender has successfully logged into its Lender portal account, the Lender must provide
the ACH credit information for the account where the Lender wishes to receive PPP processing
fees. The ACH credit information must be for an account owned by the Lender. SBA will not
make any payments to LSPs.
A Lender portal user guide is available at https://colsonservices.bnymellon.com/_locale-
assets/pdf/1502-dashboard-user-guide.pdf. Questions on the enrollment process may be directed
to Colson Customer Service at 877-245-6159.
May Lenders or LSPs share login credentials for the FTA Lender Portal?
No. Login credentials for the 1502 Dashboard are issued at the individual user level and may not
be shared among users.
How do Lenders report to SBA on loans that are fully disbursed or cancelled?
Lenders must report any PPP loans that have been fully disbursed or cancelled1 to SBA via SBA
Form 1502 (1502 report). Lenders must electronically submit SBA Form 1502 reporting
information to the SBA by the later of: (1) May 29, 2020 or (2) 10 calendar days after
disbursement or cancellation of a PPP loan.2 Thereafter, Lenders must submit PPP loan
information to SBA on a monthly basis. Lenders must report loans that are cancelled before
disbursement or that have been cancelled or voluntarily terminated and repaid after
disbursement.
SBA Form 1502 is a spreadsheet containing identifying information for each PPP loan. An SBA
Form 1502 spreadsheet is available at https://colsonservices.bnymellon.com/_locale-
assets/xls/sba-form-1502-blank-template.xlsx.
Lenders may submit the 1502 report to SBA using any of the following methods:
1
Alternatively, Lenders can report a loan as cancelled through E-Tran Servicing, as discussed
below. Any loan reported as cancelled through E-Tran Servicing must not be reported again on
the 1502 report. Lenders must request access to E Tran Servicing in their https://caweb.sba.gov
account, which is different than the FTA Lender portal account, through the Lender’s authorizing
official. The FTA Lender portal account provides downloads and resources at
https://colsonservices.bnymellon.com/programs/downloads.jsp.
2
If the tenth calendar day is a Saturday, Sunday, or legal holiday, the period continues to run
until the end of the next business day.
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• Email the 1502 spreadsheet to 1502@colsonservices.com;
• Upload the 1502 spreadsheet (“e-File”) in 1502 Dashboard; or
• Deliver the 1502 spreadsheet via Secure File Transfer Protocol (SFTP) – Requires
additional enrollment. Lenders should email SFTPaccess@colsonservices.com for
additional instructions.
Lenders may batch multiple PPP loans in a single 1502 report, or Lenders may complete a 1502
report on an individual PPP loan basis. There is no limit on how frequently Lenders can submit
1502 reports.
Important: Lenders must use separate 1502 reports for PPP loans and regular 7(a) loans.
After receiving the 1502 report, the FTA will notify the Lender of any errors through
1502 Dashboard exception reporting. Lenders should monitor the 1502 Dashboard daily. The
Lender will have until 5:00 p.m. Eastern on the second business day after submitting the 1502
report to correct any errors within the 1502 Dashboard. On the third business day after receiving
the 1502 report, and provided that the ACH information and one-time lender confirmation have
been entered, SBA will initiate the process for payment of the processing fee to the Lender.
How do Lenders report a PPP loan as fully disbursed on the 1502 report?
Lenders must submit a complete and accurate 1502 report. Each of the fields on the 1502 report
is described below:
• SBA GP Number: The 10 digit numerical SBA assigned loan identification number. The
GP number is the key to identifying Paycheck Protection Program (PPP) loans on the
SBA’s and the FTA’s databases. If less than 10 digits are reported, the disbursement
information cannot be processed.
• Lender Loan Number: The Lender's loan identification number; that is, the number the
Lender has assigned to the loan. This field is optional.
• Next Installment Due Date: The date the borrower is scheduled to make its first
payment following the Program’s automatic deferment period. As a placeholder, this date
should be listed as sixteen months from the date of loan disbursement. After SBA
remittance of any partial forgiveness payment or SBA notice that no forgiveness is
allowed, the deferment period ends and the Lender must update this date to correspond to
the first payment due date the Lender provides to the borrower. For loans that have
already been reported as disbursed, Lenders may update the Next Installment Due Date to
sixteen months from the date of loan disbursement on their first monthly PPP 1502
report.
• Status: Leave blank
• Amount Disbursed this Period on Total Loan: The total amount disbursed on the loan.
PPP loans must be fully disbursed, and the amount reported in this field must match the
loan approval amount in SBA’s electronic system.
• Amount Undisbursed on Total Loan: PPP loans must be fully disbursed. Enter $0.00.
• Interest Rate: All PPP loans have an interest rate of 1 percent. Enter 1% or leave blank.
• Guar. Portion Interest: Enter $0.00.
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• Guar. Portion Principal: Enter $0.00.
• Total to FTA: Enter $0.00. There are no Guar. Portion Payments or SBA ongoing
servicing fees on PPP loans.
• Interest Period From: Leave Blank.
• Interest Period To: Report the date interest accrues from (e.g., one-time, full
disbursement date or first disbursement date, if applicable) in this column.
• # of Days: Leave Blank.
• Calendar Basis: Leave Blank.
• Guar. Portion Closing Balance: The balance outstanding after the full disbursement.
This amount should be equal to the Amt Disbursed this Period on Total Loan. PPP loans
are 100% guaranteed by SBA and must be fully disbursed.
• Remittance Penalty: Enter $0.00. There are no SBA Subsidy Recoupment Fees or Late
Penalties for PPP loans.
How do Lenders report a PPP loan as cancelled on the 1502 report?
• SBA GP Number: The 10 digit numerical SBA assigned loan identification number.
• Lender Loan Number: The Lender's loan identification number. This field is optional.
• Next Installment Due Date: Leave blank.
• Status: Enter “C.” Loans reported as Guaranty Service Status Code (Status Code) C will
be cancelled in SBA’s electronic system.
• Amount Disbursed this Period on Total Loan: Enter $0.00.
• Amount Undisbursed on Total Loan: Enter the loan approval amount in SBA’s
electronic system at the time of cancellation reporting.
• Interest Rate: All PPP loans have an interest rate of 1 percent. Enter 1% or leave blank.
• Guar. Portion Interest: Enter $0.00.
• Guar. Portion Principal: Enter $0.00.
• Total to FTA: Enter $0.00. There are no Guar. Portion Payments or SBA ongoing
servicing fees on PPP loans.
• Interest Period From: Leave blank.
• Interest Period To: Leave blank or report the interest paid-to-date as of the last payment
received prior to cancellation reporting.
• # of Days: Leave blank.
• Calendar Basis: Leave blank.
• Guar. Portion Closing Balance: Enter $0.00 The SBA guaranty will no longer exist on
the loan after cancellation reporting.
• Remittance Penalty: Enter $0.00. There are no SBA Subsidy Recoupment Fees or Late
Penalties for PPP loans.
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Can Lenders report PPP loan disbursements, cancelled loans and voluntarily terminated
loans on the same 1502 report?
Yes, Lenders will be able to report PPP loan disbursements, cancelled loans and voluntarily
terminated loans on the same 1502 report. Lenders should use the instructions in this Notice for
reporting on PPP loan disbursements and refer to the FTA’s website at
https://colsonservices.bnymellon.com/ for forthcoming instructions for reporting cancelled and
voluntarily terminated loans using a 1502 report. SBA is developing the process for reporting
cancelled and voluntarily terminated PPP loans using a 1502 report and will post instructions on
the FTA’s website when that process is completed.
How do Lenders report a PPP loan as cancelled in E-Tran Servicing?
Lenders must request access to E-Tran Servicing in their https://caweb.sba.gov account (which is
different than the FTA Lender portal account) through the Lender’s authorizing official.
From E-Tran Servicing, search for the SBA loan number.
Once the loan number comes up, click on the cancel button at the top of the page. This will
cancel the loan and the loan guaranty. Questions on cancellations can be emailed to
7aQuestions@sba.gov.
How do Lenders report a PPP loan as voluntarily terminated and repaid after
disbursement on the 1502 report?
From E-Tran Servicing, search for the SBA loan number.
Once the loan number comes up, click on the voluntary termination button at the top of the page.
This will terminate the loan guaranty. Questions on voluntary termination can be emailed to: For
the Fresno Servicing Center: fsc.servicing@sba.gov; for the Little Rock Servicing Center:
lrsc.servicing@sba.gov.3
What confirmation must the Lender make before receiving PPP processing fees?
Lenders must make a one-time confirmation in the Lender’s FTA Lender portal before SBA will
disburse PPP processing fees to Lender. Lenders will confirm the following:
By checking the “I confirm” box below, the Lender is agreeing that for each SBA Form 1502
report submitted by Lender to request payment of Paycheck Protection Program (PPP)
processing fees, Lender confirms (1) that all PPP loans included in the report were fully
disbursed to the borrowers on the disbursement dates entered and in the loan amounts entered in
the report; (2) Lender will make no further disbursements on the PPP loans included in the
report; (3) all information in the report is true and correct; and (4) the report has been submitted
by an authorized employee or agent of Lender acting within the scope of Lender’s authority and
Lender acknowledges responsibility for all entries and certifications made on its behalf.
3
The geographic coverage of the Fresno Servicing Center is SBA Regions 5, 6 (except for
Arkansas, Oklahoma and Texas) 7, 8, 9, and 10. The geographic coverage of the Little Rock
Servicing Center is SBA Regions 1, 2, 3, 4, and 6 (except New Mexico and Louisiana).
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When won’t a Lender receive a processing fee?
A Lender will not receive a processing fee:
• Prior to full disbursement of the PPP loan;
• If the PPP loan is cancelled for any reason, either before or after disbursement, including:
o If the PPP loan is cancelled or voluntarily terminated and repaid after
disbursement but before the borrower certification safe harbor date4 (including if
a borrower repays the PPP loan because of a misunderstanding or misapplication
of the borrower’s certification regarding the necessity of the PPP loan request); or
o If the PPP loan is cancelled, terminated, or repaid after disbursement (and after
the borrower certification safe harbor date) because SBA conducted a loan review
and determined that the borrower was ineligible for a PPP loan.5
How will SBA disburse the processing fee to Lenders?
SBA will make PPP processing fee payments to Lenders using the Demand Deposit Account
ACH information supplied by Lenders on the FTA’s website. SBA will make a payment for each
loan on an individual basis so that Lenders will be able to match the received payment with the
corresponding loan. Each disbursement will be made by ACH CCD+, and the addenda record
will use the structured layout that is available in the Downloads section of the FTA’s website.
This structured layout includes payment details that Lenders can use for automating the posting
of these payments to the Lender’s record system. For Lenders unable to automate the posting of
these payments, the record layout should be referenced to determine what the payment is for
when posting the payment manually.
Will SBA review the payment of Lender processing fees?
SBA may review the payment of Lender processing fees at the time of forgiveness purchase or at
any other time SBA deems appropriate. If SBA determines the fee was paid erroneously or in the
incorrect amount, Lender is responsible for repaying the fee to SBA.
Are Lender processing fees subject to clawback if SBA determines that a borrower is
ineligible?
Yes. For any SBA reviewed PPP loan, if within one year after the loan was disbursed SBA
determines that the borrower was ineligible, SBA will seek repayment of the processing fee by
4
The borrower certification safe harbor date, which is May 18, 2020, refers to a borrower who
applied for a PPP loan and repays the loan in full on or before May 18. A borrower that makes
full loan repayment by the safe harbor date will be deemed by SBA to have made the required
certification in good faith. See SBA Paycheck Protection Program Loans: Frequently Asked
Questions (FAQs), FAQ 47, posted on May 13, 2020, available at
https://www.sba.gov/sites/default/files/2020-05/Paycheck-Protection-Program-Frequently-
Asked-Questions_05%2013%2020_2.pdf.
5
Following a loan review by SBA, a borrower may be determined to have been ineligible for a
PPP loan if, for example, the borrower did not meet the applicable size standard or lacked an
adequate basis for the certifications that it made in its PPP loan application.
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the Lender that originated the loan. However, SBA’s determination of borrower ineligibility will
have no effect on SBA’s guaranty of the loan if Lender has complied with its obligations under
section III.3.b of the initial PPP Interim Final Rule (as further explained in FAQ 1) and the
document collection and retention requirements described in the Lender application form (SBA
Form 2484).
Are Lender processing fees subject to clawback if a Lender has not fulfilled its obligations
under PPP regulations?
Yes. If a Lender fails to satisfy the requirements applicable to Lenders that are set forth in
section III.3.b of the initial PPP Interim Final Rule (as further explained in FAQ 1) or the
document collection and retention requirements described in the Lender application form (SBA
Form 2484), SBA will seek repayment of the processing fee by the Lender who originated the
loan, and may determine that the loan is not eligible for a guaranty. However, even in cases
where processing fees are subject to clawback, SBA’s guaranty will not be affected if the Lender
has complied with these obligations.
Is a Lender responsible for the actions of its Lender Service Provider (LSP)?
If the Lender authorizes an Agent or Lender Service Provider (as those terms are defined in 13
CFR § 103.1) to submit any information or make any entries or certifications on the Lender’s
behalf for any purpose through the 1502 Dashboard or through any other method of 1502
reporting, the Lender acknowledges that the Agent or LSP is acting within the scope of Lender’s
authority and Lender acknowledges responsibility for all information submitted and entries and
certifications made on its behalf.
When a loan is sold, which Lender is responsible for 1502 reporting to SBA?
When a PPP Lender sells all of its interest in a PPP loan to another participating Lender, in bulk
or individually, SBA will send the processing fee to the originating PPP Lender. The Lender
making the disbursement is responsible for completing and submitting the initial 1502 report on
loan disbursement. For those originating PPP Lenders that have already sold PPP loans, SBA
will be contacting the originating PPP Lender to obtain ACH credit information for the
originating PPP Lender. The purchasing Lender will be the party responsible to SBA with
respect to all servicing actions, including monthly 1502 reporting and requests for advance
purchases and loan forgiveness, and will be the party eligible for the guarantee purchase of a PPP
loan.
What are the ongoing reporting requirements for PPP loans?
Lenders must electronically submit SBA Form 1502 reporting information to the SBA by the
later of: (1) May 29, 2020, or (2) 10 calendar days after disbursement or cancellation of a PPP
loan. After submitting the initial SBA Form 1502 report, Lenders must submit PPP loan
information to SBA on a monthly basis.
Lenders must provide monthly 1502 reports that include loan status information for their PPP
loans regardless of whether the borrower made a payment in the current month. (All PPP loans
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are deferred.)6 Lenders must continue reporting on a loan until the Lender notifies SBA that the
loan has been paid in full.
After a Lender reports a loan as fully disbursed, the Lender must submit monthly PPP 1502
reports on or before the 15th of each month, or if the 15th is not a business day, on the next
business day after the 15th. The first monthly PPP 1502 report is due on or before July 15,
2020, however, Lenders are permitted a 2 day grace period to report for this month only.
Lenders must continue to use separate 1502 reports for PPP loans and regular 7(a) loans. The
regular 7(a) loan 1502 report and payment due dates for calendar year 2020 remain unchanged,
as published in SBA Information Notice 5000-19025.
After a PPP forgiveness purchase, if no loan balance remains, Lender must report the PPP loan
as paid in full on the next SBA Form 1502 report. If a loan balance remains after forgiveness
purchase, Lender must report the reduction in the loan balance for the forgiveness amount on the
next SBA Form 1502 report and must service the remaining balance of the loan in accordance
with PPP requirements.
Note: A PPP loan should not be reported as “paid in full” simply because it has been transferred
to another Lender.
How do Lenders report a change in the maturity of a PPP loan?
For PPP loans made before June 5, 2020, the maturity is two years; however, borrowers and
Lenders may mutually agree to extend the maturity of such loans to five years. Lenders must
report any such change in the maturity of a PPP loan through E-Tran Servicing.
Questions
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.
Dianna L. Seaborn
Director
Office of Financial Assistance
6
The deferment period runs until (i) the date that SBA remits the forgiveness amount (or notifies
the Lender that the borrower is not eligible for forgiveness) or (ii) for a borrower that does not
submit a timely forgiveness application, 10 months after the end of the loan forgiveness covered
period.
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