PPP SBA Loan Forgiveness Request
In an Interim Final Rule issued April 14, the SBA provided its process for submitting a request for forgiveness. The rule indicates that the request could be submitted as early as the end of the week seven of the 8-week covered period.
To submit a the request, the borrower needs to provide the following to the lender who, in turn, submits this to the SBA Administrator:
- the Paycheck Protection Program Application Form (SBA Form 2483) and any supporting documentation submitted with such application;
- the Paycheck Protection Program Lender’s Application for 7(a) Loan Guaranty (SBA Form 2484) and any supporting documentation;
- a detailed narrative explaining the assumptions used in determining the expected forgiveness amount, the basis for those assumptions, alternative assumptions considered, and why alternative assumptions were not used;
- any information obtained from the borrower since the loan was disbursed that the lender used to determine the expected forgiveness amount, which should include the same documentation required to apply for loan forgiveness such as payroll tax filings, cancelled checks, and other payment documentation;
- and any additional information the Administrator may require to determine whether the expected forgiveness amount is reasonable.
Once the lender has submitted the request, the Administrator will “purchase the expected forgiveness amount of the PPP loan(s) within 15 days of the date on which the Administrator receives a complete report that demonstrates that the expected forgiveness amount is indeed reasonable.”
See III.4.e (page 26) at the following link for documentation: https://www.sba.gov/sites/default/files/2020-04/PPP--IFRN%20FINAL.pdf