While a second round of the Paycheck Protection Program (PPP) is underway, many borrowers from the first round are still waiting for approval of their loan forgiveness application, while others may wish to file amended applications now that the 2020 fiscal year has ended. Any PPP borrower is allowed to resubmit a loan forgiveness application (using SBA Form 3508S) up until the time they receive a loan review decision. There is a shorter and simpler version of the 3508S form for businesses that borrowed less than $150,000.
Once a resubmission is received the lender must make a decision on the new information within 60 days.
If full loan forgiveness is denied the lender must notify the borrower in writing within 5 business days of the decision. The borrower then has 30 calendar days from the receipt of the notification to seek, through the lender, a review by the SBA’s Office of Hearings & Appeals. Keep in mind that appeals are limited to loan review decisions that find the borrower:
- Was ineligible for a PPP loan;
- Was ineligible for the loan amount received or used the PPP proceeds for unauthorized uses;
- Is ineligible for PPP loan forgiveness for the amount (full or partial) determined by the lender; and/or
- Is ineligible for PPP loan forgiveness in any amount when the lender has issued a full denial decision to the SBA.
If you wish to file an amended PPP loan forgiveness application or want to appeal a loan forgiveness decision, we can help. Please contact Gray, Gray & Gray at (781) 407-0300.