Bankers,

With apologies for the multiple e-mails in recent days, we wanted to share with you another guidance update from the Small Business Administration we received today regarding eligibility for religious non-profits and churches to participate in the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program.


Also this morning, we were alerted that there have been challenges for some bankers when submitting form 3506 , which non-SBA lenders must submit in order to receive delegated authority to issue 7(a) loans under the Paycheck Protection Program.

Be advised that bankers have been receiving the below information when submitting the form to delegatedauthority@sba.gov. We hope providing this information will help unencumber your processes.


Please provide the request on the OMB approved form and don’t forget to attach the Incumbency Certificate.
 
If you would like to participate as a Lender
 
  • https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp#section-header-8
  • “Lender Forms and Guidance” is provided at the bottom of the page.
  • The SBA Form 3506 is to be used by Federally Regulated Institutions who have no history with SBA loan programs but want to apply to participate in the PPP program.
  • Please know that the “Paycheck Protection Program, Lender Application Form – Paycheck Protection Program Loan Guaranty,” SBA Form 2484, is for use with individual loan applications and IS NOT part of the application to become a participating lender in the Paycheck Protection Program.
  • Please be aware that any applications for Lender participation provided before 3:30 pm EST on Friday April 3, 2020 likely does not have the correct documentation as it was still being finalized.
 
You must resubmit your request using the correct documentation with SBA Form 3506 as approved by OMB (SBA Form 3506 must reflect “OMB Control Number: 3245-0407 ” in the upper right-hand corner. Draft versions are typically missing the “0407” and will not be accepted for processing).
 
Existing Lenders with an active SBA Form 750 are automatically enrolled as participants in the PPP program. Lenders with new or inactive SBA Forms 750 must apply for PPP using the SBA Form 3506.
 
When you submit the “PPP Lender Agreement”, to expedite the process:
  • Please do not use a secure email. We cannot open them.
  • Please ensure that the CARES act Section 1102 Lender Agreement (SBA Form 3506) is completed in its entirety, witnesses have signed (bank seal on the document is not necessary but is helpful), AND please do not overlook the need to attach an “Incumbency Certificate”.


CBA is working diligently to ensure bankers have the most up-to-date information available as soon as we have it. As always, please do not hesitate to contact us with any questions or concerns.
Colorado Bankers Association
303-825-1575 | 303-825-1585