SBA issues guidance on PPP lending

SBA issues guidance on PPP lending

The Small Business Administration issued two interim final rules on Paycheck Protection Program requirements.

One interim final rule focuses on loan review procedures and related borrower and lender responsibilities, such as SBA reviews of individual PPP loans, what lenders should review, and lender fees subject to clawback if SBA determines a borrower is ineligible.

The other interim final rule provides details on loan forgiveness, including eligible payroll and nonpayroll costs, reductions to the loan forgiveness amount based on reduced employees or compensation, and documentation requirements.

The new rules follow the release last week of a procedural notice on submitting the initial SBA Form 1502 to report on PPP loans and collect the processing fees on fully disbursed loans. ICBA last week provided its comprehensive recommendations for Congress to include in the next COVID-19 response package, including PPP reforms on spending restrictions and loan forgiveness.

Community bankers who continue to have trouble with the SBA’s E-Tran and SBA Connect Lender Gateway portals can direct assistance questions to the SBA at 833-572-0502 or