When a bank makes its decision to the SBA, which finds that the borrower is not entitled to any amount of forgiveness, the bank must provide the SBA with the reason for its refusal as well as: (i) the calculation form for calculating the credit provision; (ii) the PPP A calendar; and (iii) the demographic information form for PPP borrowers (if submitted to the bank). The bank must confirm that the information it provides to SB accurately reflects its P3 credit records and that the bank made its decision in accordance with the bank`s pfPP loan verification requirements. The bank must also inform the borrower in writing that the bank has refused SB to rule on the rejection of the PfPP loan application. The SBA reserves the right to verify at its sole discretion the Bank`s decision on pardon. The responses to Form 3509 will provide, in its most fundamental way, reasons to refuse credit or seek new corrective measures against borrowers who were not eligible for PPPs. For example, borrowers who disclose an NAICS code as part of a class of ineligible companies (for example. B, some passive companies), which disclose ownership of a large publicly traded company with large numbers of employees and access to capital, or which disclose ownership of a government or foreign entity, should, on the basis of this consequence, argue over pardons. It is not clear what additional measures the SBA can take against these borrowers (or lenders) for whom they should not have qualified at all for PPPs. For those who are clearly not eligible for the PPP and who give incorrect answers on Form 3509 (or answers that do not comply with their initial loan application), this is another piece of information that can be used in future enforcement actions. If an applicant does not meet the terms of a P3 loan or if, if not, a bank is unable to process a loan in PPP, the bank must notify the applicant in writing as soon as possible in order to reduce the applicant`s potential reputational risks and legal rights. Before entering into a transaction with a “change of ownership,” the PPP borrower must notify the bank in writing of the proposed transaction and provide the bank with a copy of the proposed agreements or other documents that would be at the end of the proposed transaction. All deposit-taking institutions with PPP loans are entitled to borrow under the Fed`s Paycheck Protection Program (PPPLF) credit facility. Eligible borrowers participate in the facility through the reserve bank in the district where the eligible borrower is located.
Only PPP loans guaranteed by the SBA can be a guarantee for this facility. For more information, please see the PPPLF appointment sheet and the additional resources available here. Yes, a lender may require the SBA to purchase the expected amount of the pardon at the end of the seventh week of the covered period.