SBA, Paycheck Protection Program: E-Tran Loan Status Updates for PPP Partial and Full Forgiveness Payments
Summary
An SBA Procedural Notice, Control No. 5000-847210, effective May 18, 2023, addressed to all SBA employees and PPP lenders, on E-Tran loan status updates for partial and full Paycheck Protection Program (PPP) forgiveness payments. It states that it supersedes SBA Procedural Notice 5000-846398 (effective April 26, 2023). Lenders must keep submitting a monthly report on SBA Form 1502 by the 10th of each month, and must not report a PPP loan as forgiven until the forgiveness payment is received from SBA. The notice lists how to complete each Form 1502 field for a partially forgiven loan and for a fully forgiven loan, which is reported with Status "6" (Paid in Full). The name of Jihoon Kim, Director, Office of Financial Program Operations, appears at the end.
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“SBA, Paycheck Protection Program: E-Tran Loan Status Updates for PPP Partial and Full Forgiveness Payments.”
Original at legacy.sba.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/sba-paycheck-protection-program-e-tran-loan-status-updates-for-ppp-par-545222c064/
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SBA Procedural Notice
TO: All SBA Employees and PPP Lenders CONTROL NO.: 5000-847210
SUBJECT: Paycheck Protection Program: EFFECTIVE: May 18, 2023
E-Tran Loan Status Updates for
PPP Partial and Full Forgiveness
Payments
The purpose of this Notice is to provide guidance for the reporting of partially and fully forgiven
Paycheck Protection Program (PPP) loans. 1 This Notice supersedes SBA Procedural Notice
5000-846398 (effective April 26, 2023).
PPP lenders must continue to provide a separate monthly report on SBA Form 1502 (Form 1502)
for all of their PPP loans, regardless of whether the borrower made a payment during the report
period. The month-end report period begins with the first calendar day of the prior month and
continues through the last calendar day of the prior month. The deadline for lenders to submit
their Form 1502 to the Fiscal Transfer Agent (FTA) via the 1502 Gateway in SBA’s Capital
Access Financial System (CAFS) at https://caweb.sba.gov has been moved up to on or before the
10th of each month, or the next business day if the 10th is not a business day. An updated
calendar with 1502 due dates will be posted to the FTA Wiki.
SBA policy requires Lenders to report their PPP loans monthly until the Lender reports to SBA
that the loan has been fully forgiven by SBA or paid in full by the borrower. Lenders must not
report a PPP loan as fully or partially forgiven until receipt of the PPP forgiveness payment from
SBA. Premature reporting of PPP loan forgiveness (full or partial) may impact Lenders’ ability
1
For additional information on the reporting of PPP loans, see SBA Procedural Notice 5000-20091 (effective
February 8, 2021) Second Updated Paycheck Protection Program Lender Processing Fee Payment and 1502
Reporting Process; SBA Procedural Notice 5000-20076 (effective January 13, 2021) First Draw Paycheck
Protection Program Loan Increases After Enactment of the Economic Aid Act; SBA Procedural Notice 5000-20036
(effective July 13, 2020) Updated Paycheck Protection Program Lender Processing Fee Payment and 1502
Reporting Process; and, SBA Procedural Notice 5000-20028 (effective May 21, 2020) Paycheck Protection Program
Lender Processing Fee Payment and 1502 Reporting Process.
PAGE 1 of 4 EXPIRES: 5-1-24
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
to receive payment from SBA. Failure to comply timely with Form 1502 reporting requirements
may result in cancellation or termination of the loan guaranty.
How do Lenders report a PPP loan as partially forgiven on Form 1502?
If a loan balance remains after a Lender receives a PPP forgiveness payment from SBA, the
Lender must report the reduction in the loan balance for the forgiveness amount on the next
month-end Form 1502 and service the remaining balance of the loan in accordance with PPP
requirements. Each of the fields on the 1502 report is described below:
• SBA GP Number: Enter the 10-digit numerical SBA loan number.
• Next Installment Due Date: Enter the date the borrower is scheduled to make its first
payment following SBA remittance of any partial forgiveness payment or SBA notice
that no forgiveness is allowed. The date cannot be after the maturity date of the loan.
• Status: Leave Blank.
• Amt Disbursed this Period on Total Loan: Enter $0.00.
• Amount Undisbursed on Total Loan: Enter $0.00.
• Interest Rate: Enter 1% or leave blank.
• Portion Interest: Enter $0.00
• Portion Principal: Enter the principal portion of the forgiveness payment received from
SBA.
• Total to FTA: Enter $0.00.
• 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, or interest paid-to-date as of
the last borrower payment received). Do not report the date to which interest was paid by
SBA, if any. The borrower is responsible for paying accrued interest from the
disbursement date for any remaining loan balance after SBA remittance of any partial
forgiveness payment or SBA notice that no forgiveness is allowed.
• # Of Days: Leave Blank.
• Calendar Basis: Leave blank or enter the interest calendar method (i.e., 365 or 360).
PAGE 2 of 4 EXPIRES: 5-1-24
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
• Portion Closing Balance: Enter the remaining loan balance after SBA remittance of any
partial forgiveness payment or SBA notice that no forgiveness is allowed.
• Remittance Penalty: Enter $0.00
How do Lenders report a PPP loan as fully forgiven on Form 1502?
After a Lender receives a PPP forgiveness payment from SBA, if no loan balance remains, the
Lender must report the PPP loan as paid in full on the next month-end Form 1502. Lenders must
submit a complete and accurate Form 1502. Instructions on how to populate the fields in the
Form 1502 are as follows:
• SBA GP Number: Enter the 10-digit numerical SBA loan number.
• Lender Loan Number: This field is optional.
• Next Installment Due Date: Leave Blank.
• Status: Enter “6” (Paid in Full)
• Amt Disbursed this Period on Total Loan: Enter $0.00.
• Amount Undisbursed on Total Loan: Enter $0.00.
• Interest Rate: Enter 1%.
• Portion Interest: Enter the interest portion of the forgiveness payment received from
SBA.
• Portion Principal: Enter the principal portion of the forgiveness payment received from
SBA.
• Total to FTA: Enter $0.00.
• Interest Period From: Leave blank or report the loan disbursement date (e.g., one-time,
full disbursement date or first disbursement date, if applicable).
• Interest Period To: Report the date to which interest was paid by SBA. Do not report
the date the payment was received by the Lender.
• # Of Days: Leave blank or enter the number of days covered by the interest portion of
the forgiveness payment received from SBA.
• Calendar Basis: Leave blank or enter the interest calendar method (i.e., 365 or 360).
• Portion Closing Balance: Enter $0.00.
PAGE 3 of 4 EXPIRES: 5-1-24
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
• Remittance Penalty: Enter $0.00.
Effective immediately, when SBA remits the forgiveness payment to the Lender, SBA will
reduce the balance of the PPP loan in E-Tran by the forgiveness amount, and for PPP loans that
have been fully forgiven, SBA will update the E-Tran Servicing loan status to “Paid in Full.”
A complete listing of Form 1502 reporting scenarios and complete instructions are available on
the FTA Wiki at the following link:
https://catran.sba.gov/ftadistapps/ftawiki/pdf/p.cfm?a=Paycheck+Protection+Program+1502+Re
porting.pdf&utm_medium=email&utm_source=govdelivery
Questions?
For general Form 1502 questions, please contact the FTA Client Service Team
at 1502@sba.gov or via the toll-free hotline at (877) 470-0722.
Partner Information Management System (PIMS) within CAFS: PIMS is the SBA’s master
database for capture, maintenance, and use of contact information for ALL participants of the
7(a) loan program including Lenders, Lender Service Providers (LSPs), Pool Assemblers,
Brokers / Dealers, and Investors. Please update your contact information in the PIMS database.
For instructions on how to access and add your information to PIMS, please reference the PIMS
Instructional Guide., available at the following link:
https://catran.sba.gov/ftadistapps/ftawiki/pdf/p.cfm?a=PIMS+Access+and+Update+Guide.pdf&u
tm_medium=email&utm_source=govdelivery.
Jihoon Kim
Director
Office of Financial Program Operations
PAGE 4 of 4 EXPIRES: 5-1-24
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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