CARES Act: SBA Issues Updated Procedural Notice for PPP Lender Submission of PPP Loan Forgiveness Decisions and SBA Loan Forgiveness Reviews | Practical Law

CARES Act: SBA Issues Updated Procedural Notice for PPP Lender Submission of PPP Loan Forgiveness Decisions and SBA Loan Forgiveness Reviews | Practical Law

The Small Business Administration (SBA) issued an updated procedural notice informing Paycheck Protection Program (PPP) lenders of the process for submitting PPP loan forgiveness decisions to the SBA and the SBA's PPP loan forgiveness review process. It also addresses how PPP lenders should request payment of the PPP loan forgiveness amount and payment of the PPP loan forgiveness amount determined by the SBA.

CARES Act: SBA Issues Updated Procedural Notice for PPP Lender Submission of PPP Loan Forgiveness Decisions and SBA Loan Forgiveness Reviews

by Practical Law Finance
Published on 27 Jul 2020 • USA (National/Federal)
The Small Business Administration (SBA) issued an updated procedural notice informing Paycheck Protection Program (PPP) lenders of the process for submitting PPP loan forgiveness decisions to the SBA and the SBA's PPP loan forgiveness review process. It also addresses how PPP lenders should request payment of the PPP loan forgiveness amount and payment of the PPP loan forgiveness amount determined by the SBA.
On March 27, 2020, the US government passed the CARES Act in response to the COVID-19 crisis. Under the CARES Act, the Small Business Administration (SBA) is offering loans under the Paycheck Protection Program (PPP). On April 2, 2020, the SBA issued an interim final rule (Initial Rule) outlining the key provisions for implementing the PPP. Subsequently, the SBA has issued additional interim final rules (see Practice Note, Road Map to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Paycheck Protection Program).
On July 23, 2020, the SBA issued an updated procedural notice (Notice) that informs PPP lenders of the processes for:
  • Submitting decisions on PPP borrower loan forgiveness applications to the SBA.
  • Requesting payment of the forgiveness amount determined by the lender.
  • Loan forgiveness reviews by the SBA.
  • Payment of the loan forgiveness amount determined by the SBA.

Notice Provisions

The Notice provides information on:
  • The PPP loan forgiveness process and the steps PPP lenders are required to take.
  • PPP lender submission of PPP loan forgiveness decisions, supporting documentation, and requests for forgiveness payments to the SBA, including using the SBA's new PPP Forgiveness Platform that goes live on August 10, 2020.
  • How to submit PPP loan forgiveness decisions, supporting documentation, and requests for forgiveness payments through the PPP Forgiveness Platform.
  • PPP lender confirmations required for PPP forgiveness submissions.
  • Documentation and data required to be submitted when the PPP lender issues its decision on PPP loan forgiveness to the SBA.
  • Steps PPP lenders must take when the SBA notifies the PPP lender that the SBA is initiating a PPP loan review.
  • Steps PPP lenders must take when the SBA remits the forgiveness payment to the PPP lender.
  • Appealing the SBA’s adverse determination of an ineligible PPP loan, loan amount or loan forgiveness amount claimed by the PPP borrower.

More Information

For summaries of the SBA PPP, see:
For additional guidance from the Treasury Department, see: