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SBA Paycheck Protection Program (PPP) Forgiveness Payments

Summary

This SBA message to PPP lenders updates forgiveness payment processing and announces the new SBA Form 3508S in the Forgiveness Platform. As of October 14, the platform added a 30/360 interest accrual method beside Actual/360 and Actual/365; unless a lender notifies SBA otherwise, forgiveness payments use Actual/360. Lenders can now update the primary bank contact, who receives SBA correspondence on loan reviews and SBA decisions, and the 3508S was planned for release in the platform and the APIs by Monday, October 19. The message tells lenders to check that the forgiveness amount in the platform matches their records before SBA issues payment, and says EIDL Advance information is now available on the platform for submitted decisions.

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Full text

Subject: SBA Paycheck Protection Program (PPP) Forgiveness Payments

Dear PPP Lender,

This message provides an update on Forgiveness Payment Processing and the availability of the new SBA
Form 3508S in the Forgiveness Platform.

Platform Updates:
   •   As of October 14, the PPP Forgiveness Platform has been updated to include an additional
       interest accrual method (30/360). The following methods are now available under Institution
       Settings within the platform:
               ➢ Actual/360
               ➢ Actual/365
               ➢ 30/360
       We strongly encourage you to confirm your selected interest accrual interest method within
       the platform. Unless you notify SBA otherwise within the platform, Loan Forgiveness payments
       will be made using the Actual/360 method.
   •   In addition, we have launched the ability to update the primary bank contact within the
       platform Institutional Settings. The primary bank contact will be utilized for all correspondence
       from the SBA related to Loan Reviews and SBA Decisions. If the primary bank contact is not
       updated, all correspondence will be sent to the Authorizing Official.
   •   The 3508S is planned to be released in the Platform and the APIs by Monday, October 19.
   •   We have also added several additional export capabilities within the Payment Dashboard and
       the All Submissions screens to make your reconciliation and tracking more efficient.

Reminders and Processing Tips:
   •   To ensure successful payment processing, perform a final check of your submitted forgiveness
       decisions to ensure the Forgiveness Amount in the platform matches your records. If you notice
       a discrepancy, please make a correction before SBA issues a forgiveness payment. To make a
       correction after 24 hours from forgiveness decision submission, please contact SBA to request a
       withdrawal of the forgiveness decision from the platform, and resubmit the decision with an
       accurate forgiveness amount. For assistance, please contact the Lender Hotline at +1 (833) 572-
       0502 or use the Platform Inbox to send a message to the SBA.
   •   EIDL Advance information is now available on the Platform for submitted decisions. If your
       borrower received an EIDL Advance, the Platform allows you to see if an EIDL Advance amount
       will (automatically) be deducted from the final forgiveness payment remitted to you. You should
       not adjust your submissions or calculations to account for the EIDL Advance deduction. For
       additional information on EIDL Advance deductions, please visit the Forgiveness FAQs or
       reference the EIDL Documentation in the platform.
   •   SBA is making forgiveness payments to Lenders using the Demand Deposit Account ACH
       information supplied by Lenders in the platform. 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 on the Platform payment processing page. 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.

Additional information on the Forgiveness process, including relevant Procedural Notices, IFRs, and
other CARES Act and PPP resources, as well as instructions for authorizing accounts and submitting
forgiveness decisions in the Platform can be found in the Lender User Guide and platform videos. These
resources are located in the Platform “Resources” dashboard located at https://forgiveness.sba.gov/

Please note, SBA will not expedite individual loan reviews or remittance of forgiveness amounts to
lenders.

If you have any other questions, please contact the Lender Hotline at +1 (833) 572-0502 or use the
Platform Inbox to send a message to the SBA. Thank you for your participation and continued
cooperation.

Sincerely,
Office of Capital Access
U.S. Small Business Administration

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PPP_Forgiveness_Update_Oct_15_-_Interest_Accrual_Methods.pdf
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189,145 bytes
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08e32254504140beabd5404487b5bfa69a5b70a6aa5fcc332c61f0274957cd44
Our copy
PPP_Forgiveness_Update_Oct_15_-_Interest_Accrual_Methods.pdf
Original
www.sba.gov
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