sba.gov, PPP lender information (archive.org capture 2024-01-09)

Summary

SBA's guide "PPP lender information" describes 2021 changes to the Paycheck Protection Program meant to open it to more underserved small businesses, including eliminating a restriction on owners with prior non-fraud felony convictions. It states that SBA had a 14-day exclusive application period for businesses and nonprofits with fewer than 20 employees before the program expired on March 31, 2021. The guide lists SBA procedural notices on participation sales, whole loan sales, the lender processing fee and 1502 reporting process, and refinance of EIDLs with PPP proceeds. Lender forms are covered, with SBA and Treasury giving strong consideration to factors such as lender compliance programs, including those related to Bank Secrecy Act.

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PPP lender information

Information and resources for lenders participating in the Paycheck Protection Program (PPP).

Content

Biden Administration takes steps to promote equitable access to SBA relief

On February 22, 2021, President Biden announced the following changes to SBA's COVID-19 relief programs to ensure equity:

Specifically, from February 24 to March 9, 2021, SBA had a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees . This gave lenders and community partners more time to work with the smallest businesses to submit their applications, while also ensuring that larger PPP-eligible businesses would still have plenty of time to apply for and receive support before the program expired on March 31, 2021.

SBA also made four additional changes to open the PPP to more underserved small businesses than ever before. SBA is working with community partners to improve the emergency relief “digital front door” and conduct extensive stakeholder outreach. And, SBA is strengthening its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse. With the PPP Interim Final Rule and FAQ issued at the end of July, 2021, SBA:

- Allowed sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
- Eliminated an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal
- Eliminated PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP
- Ensured access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP

A critical goal from Congress for the 2021 round of PPP was to reach small and low- and moderate-income (LMI) businesses who have not received the needed relief a forgivable PPP loan provides. Congress set a $15 billion set-aside for small and LMI First Draw borrowers. With existing policies, the current round has only deployed $2.4 billion to small LMI borrowers, in part because a disproportionate amount of funding in both wealthy and LMI areas is going to firms with more than 20 employees. The less-than-20 exclusivity period combined with the changes to expand access for sole proprietors, ITINs, returning citizens, and student loan debt will help us achieve congressional goals.

Interim final rules

SBA has issued the following Interim Final Rules related to PPP:

2021

2020

Additional guidance for lenders

Frequently Asked Questions

Letters from the SBA Administrator

Lender notices

- Extension and Revision of SBA Guidance on Guaranty Purchases and Lender Servicing Responsibilities for PPP Loans
- SBA Loan Reviews of Paycheck Protection Program Lender Partial Approval Forgiveness Decisions
- Extension of and Update to Guidance Related to Paycheck Protection Program Loans and Changes of Ownership
- Guaranty Purchases, Charge-Offs, and Lender Servicing Responsibilities
- Extension and Revision of Guidance on Whole Loan Sales of Paycheck Protection Program Loans
- Updated Notice on First Draw Paycheck Protection Program Loan Increases After Enactment of the Economic Aid Act
- Second Notice on Modifications to SBA Forms 3506, 3507, and 750 CA (for purposes of PPP only)
- Second Notice of Revised Procedures for Addressing Hold Codes and Compliance Check Error Messages on PPP Loans
- Registration Required for System for Award Management (SAM.gov)
- Revised SBA PPP Procedures for Addressing Hold Codes on First Draw PPP Loans and Compliance Check Error Messages on First Draw PPP Loans and Second Draw PPP Loans
- Second Updated PPP Lender Processing Fee Payment and 1502 Reporting Process
- SBA PPP Procedures for Addressing Unresolved Issues on Borrower First Draw PPP Loans
- SBA Procedural Notice on PPP Borrower Resubmissions of Loan Forgiveness Applications Using Form 3508S, Lender Notice Responsibilities to PPP Borrowers, and Offset of Remittances to Lenders for Lender Debts
- SBA Procedural Notice on PPP Excess Loan Amount Errors
- SBA Procedural Notice on First Draw PPP Loan Increases After Enactment of the Economic Aid Act
- SBA Procedural Notice on Modifications to SBA Forms 3506, 3507 and 750 CA (for purposes of PPP only)
- SBA Procedural Notice on Repeal of EIDL Advance Deduction Requirement for SBA Loan Forgiveness Remittances to PPP lenders
- SBA Procedural Notice on Extension of Authority to Guarantee PPP loans
- SBA Procedural Notice on Participation Sales for PPP loans. The purpose of this notice is to provide guidance to lenders approved to participate in the PPP regarding the sale of participating interests in PPP loans.
- SBA Procedural Notice on Whole Loan Sales for PPP Loans. This notice provides guidance on the procedures for completing whole loan sales of PPP loans between participating lenders.
- SBA Procedural Notice on Lender Processing Fee Payment and 1502 Reporting Process for PPP. The purpose of this notice is to inform PPP lenders of the reporting process through which PPP lenders will report on PPP loans and collect the processing fee on fully disbursed loans which they are eligible to receive.
- SBA Procedural Notice on Refinance of EIDLs with PPP Loan Proceeds and Lender Remittance of EIDL Refinance Proceeds to SBA informs PPP lenders regarding how loan proceeds must be used to refinance an SBA Economic Injury Disaster Loan (EIDL). The notice also informs PPP lenders of the procedure for remitting to the SBA any PPP loan proceeds designated for the refinance of an EIDL.
- SBA Information Notice on Guidance Regarding Identification and Reporting of Suspicious Activity in the COVID-19 EIDL Program provides a brief overview of COVID-19 assistance available under SBA’s EIDL program, including both advances (grants) and direct loans, and to alert depository financial institutions to the potential for suspicious activity related to COVID-19 EIDL funds deposited into business or personal accounts.
- SBA Procedural Notice on Procedures for Lender Submission of PPP Loan Forgiveness Decisions to SBA and SBA Forgiveness Loan Reviews informs 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.
- SBA Procedural Notice on PPP Loans and Changes of Ownership : The purpose of this notice is to provide information concerning the required procedures for changes of ownership of an entity that has received PPP funds (a “PPP borrower”).
- Paycheck Protection Program: E-Tran Loan Status Updates for PPP Partial and Full Forgiveness Payments

Borrower forms

Applications

Disclosures

Loan necessity questionnaires

For borrowers that, together with their affiliates, received PPP loans with an original principal amount of $2 million or greater:

Lender forms

SBA and Treasury will consider applications for participation as PPP lenders from community development financial institutions and minority-, women-, veteran-, and military-owned lenders based on factors including those described on SBA Form 3507. Such factors include cases in which the lender does not meet all of the requirements listed on that form.

Among other criteria, SBA and Treasury will give strong consideration to the types of financial services provided by the lender; the lender’s compliance programs, including those related to Bank Secrecy Act; and the number and dollar amount of small business loans originated and serviced by the lender in a 12-month period over the past 36 months.

SBA and Treasury will also consider board membership composition as a proxy for ownership and control when determining the minority-, women-, veteran-, and military-owned status of non-profit lenders.

Lender assistance

Lenders who need assistance accessing SBA's E-Tran system may call our Lender Customer Service Line at 833-572-0502.

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