- For second-draw loans only, verify that the supporting documentation reconciles to the borrower’s revenue reduction calculation. (The SBA’s requirements for second-draw PPP loans likely will not come due until this summer at the earliest.)
Lenders have 60 days from receipt of a complete application to issue a decision on forgiveness to the SBA. Decisions made must be one of the following: approval in whole, approval in part, or denial. Approval in part would happen if the lender determined that the borrower is not eligible for the entire amount of forgiveness requested-for example, if payroll costs do not exceed 60 percent of total eligible costs.
Communicating forgiveness decisions with the SBA and borrower
Although loan forgiveness must be determined by the lender, all loan decisions must be submitted to the SBA. The SBA gets final say on loan forgiveness for PPP loans which it chooses to review. In order to finalize, the lender must follow separate processes for loans that are approved (in whole or in part) and cash advance usa loans in Cimarron Hills CO loans that are denied. Continue Reading To finalize its decision, the lender is required to notify the SBA and the borrower of what was decided