SBA updates guidance on collecting PPP lender processing fees

Federal Issues SBA Covid-19 Small Business Lending

On July 13, the Small Business Administration (SBA) issued Procedural Notice 5000-20036 concerning Form 1502 that lenders must file in order to report fully disbursed Paycheck Protection Program (PPP) loans and request payment of eligible PPP processing fees. As previously covered by InfoBytes, the SBA began accepting Form 1502 on fully disbursed or cancelled PPP loans on May 22. Among other things, the notice provides updated guidance to lenders on (i) the amount of lenders fees the SBA will pay for processing PPP loans; (ii) the process for submitting Form 1502 and how to report loans that are fully disbursed or cancelled; (iii) the procedure for reporting PPP loans that are voluntarily terminated and repaid after disbursement; (iv) situations in which a lender is not eligible to receive a processing fee, as well as clawback circumstances; (v) lender service provider responsibilities; and (vi) ongoing PPP loan reporting requirements.