November 25, 2020
C-Suite Wednesday — SBA PPP Loan Forgiveness Decisions Reach $38 Billion
According to the PPP webpage, the SBA has approved 5.2 million PPP loans worth over $525 billion. However, data released November 22, 2020, suggests that the SBA has only made forgiveness decisions on 7% of the total number of PPP loans. The SBA says it has received 595,144 lender forgiveness decisions worth $83.2 billion and that the Agency has forgiven 367,321 of those loans.
On yesterday’s Coleman Report Live daily show, lenders commented that they estimate approximately 10% of their forgiveness decisions are being spot-checked by the SBA for accuracy. Most spot checks appear routine and require only a few documents. However, one Coleman commenter said that when SBA reviews loans over $2 million they are asking for “everything but the kitchen sink.”
All or most PPP loans over $2 million appear to be triggering a review. Nevertheless, the SBA has said that these reviews do not mean that the loan is fraudulent or contained errors. When the SBA initiates a review of a loan over $2 million the lender servicing that loan will be notified and will be given a loan review notice. The notice includes instructions regarding the lender’s responsibilities moving forward and typically instructs the lender to have the borrower complete the SBA form 3509 or 3510. The borrower has 10 days to complete the form and return it to their lender. The lender must then separately input the borrower’s responses into the forgiveness platform and upload any requested documentation.
To stay up to date on the forgiveness process and ensure regulatory compliance with all PPP requirements, consider purchasing a subscription to Coleman’s PPP Forgiveness Lender’s Guide. With a one time fee of $489, you will be provided with a life-long subscription to a regularly updated guide that reflects all Congressional, U.S. Treasury, and SBA guidelines on PPP loan forgiveness.