SBA, Extension of Guidance on Whole Loan Sales of Paycheck Protection Program Loans
Summary
This SBA Procedural Notice, effective May 24, 2022, extends guidance on whole loan sales of Paycheck Protection Program loans through May 1, 2023. It refers to the April 30, 2021 issuance of SBA Procedural Notice 5000-809242. Under 13 CFR § 120.432(a), Lenders with PPP portfolios may sell all of their interest in PPP loans to other participating Lenders, and SBA's prior written consent is not required for PPP loans only. For Lender merger and acquisition transactions, the selling Lender must also list all PPP loans (active, forgiven, cancelled, paid-in-full, etc.) that were issued an SBA Loan Number in E-Tran. The signature block names Dianna L. Seaborn, Director, Office of Financial Assistance.
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“SBA, Extension of Guidance on Whole Loan Sales of Paycheck Protection Program Loans.”
Original at legacy.sba.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/sba-extension-of-guidance-on-whole-loan-sales-of-paycheck-protection-p-f6daed86fa/
, SHA-256 d5bf8bf023fcd36b963e2daa1b2b5c357689c0f055477eaa3c8e8de1d9c7792a.Full text
SBA Procedural Notice
TO: All SBA Employees and Paycheck Protection CONTROL NO.: 5000-833606
Program Lenders
EFFECTIVE: May 24, 2022
SUBJECT: Extension of Guidance on Whole Loan
Sales of Paycheck Protection Program Loans
On April 30, 2021, SBA issued SBA Procedural Notice 5000-809242 to extend previously
provided guidance to Lenders approved to participate in the Paycheck Protection Program
(“PPP”) regarding whole loan sales of PPP loans. The purpose of this Notice is to extend PPP
whole loan sales guidance through May 1, 2023, as described and updated below.
Lenders with PPP portfolios may sell all of their interest in PPP loans to other participating
Lenders in accordance with 13 CFR § 120.432(a). For purposes of PPP loans only, SBA’s prior
written consent is not required. All PPP loans must be sold to Lenders that have a signed SBA
Form 750, SBA Form 750 CA, SBA Form 3506, or SBA Form 3507 (referred to individually as
a “Loan Guarantee Agreement”). The purchasing Lender must take possession of the note and
the loan documents and service the loan. The purchasing Lender, however, may elect to have the
originating Lender subservice the loan and hold the note and loan documents on behalf of the
purchasing Lender. The purchasing Lender acquires the PPP loan subject to SBA’s existing
rights, including its right to deny liability on its guarantee. The PPP loan will be purchased
subject to the acquiring Lender’s applicable Loan Guarantee Agreement.
The originating Lender must immediately provide SBA’s Office of Credit Risk Management
with notice of any PPP whole loan sale including the name of the purchasing Lender, the current
mailing address for both Lenders, an Authorized Lender Official for both Lenders, and valid
email addresses for both Authorized Lender Officials. Additionally, the notice must include a
loan list in an Excel file format that contains the SBA loan number, borrower name, original loan
amount, current loan principal balance, and maturity date. The notice and required information
must be submitted to the following e-mail address: PPPLoanSales@sba.gov. For purposes of
PPP loans only, the originating Lender will be considered to meet the good standing and
satisfactory performance requirements of 13 CFR § 120.433.
The purchasing Lender will be the party responsible to SBA with respect to all servicing actions,
including requests for advance purchases and loan forgiveness, and will be the party eligible for
the guarantee purchase of a PPP loan.
PAGE 1 of 2 EXPIRES: 5-1-2023
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
NOTE: This Procedural Notice applies to Lender merger and acquisition transactions where the
Lender has PPP loan(s) in its portfolio. 1 With the respect to Lender merger and acquisition
transactions only, in addition to the information required to be included in the Excel file set forth
above, the selling Lender must also include a list of ALL PPP loans (active, forgiven, cancelled,
paid-in-full, etc.) held by the selling Lender and were issued an SBA Loan Number in E-Tran.
This will help ensure that the history of all PPP loans is accessible to the purchasing Lender.
Questions
Questions may be directed to Darrel Eddingfield at darrel.eddingfield@sba.gov or
PPPLoanSales@sba.gov.
Dianna L. Seaborn
Director
Office of Financial Assistance
1
Separate SBA Loan Program Requirements unrelated to PPP may also apply to Lender merger and acquisition transactions.
PAGE 2 of 2 EXPIRES: 5-1-2023
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
File and source
- File
- Procedural-Notice---Extension-of-PPP-Whole-Loan-Sales-through-May-2023-Final-Draft--508.pdf
- Size
- 175,264 bytes
- SHA-256
- d5bf8bf023fcd36b963e2daa1b2b5c357689c0f055477eaa3c8e8de1d9c7792a
- Original
- legacy.sba.gov