The U.S. Small Business Administration, in consultation with the U.S. Department of the Treasury, issued new and revised guidance for the Paycheck Protection Program.

Based on the enactment of the Paycheck Protection Program Flexibility Act of 2020, the maturity of all loans approved on or after June 5, 2020 will be for 5 years. The SBA E-Tran loan system has been updated to reflect that all loans will automatically reflect the 5 year maturity when submitted and approved. Loans approved and/or funded prior to June 5, 2020 with the 2 year maturity may be extended by the lender and borrower mutually agreeing to a 5 year maturity. Formal guidance on the changes to the CARES Act are forthcoming from SBA.

To ensure your financial institution receives PPP processing fees:

1. Submit your PPP 1502 report to SBA in accordance with SBA Procedural Notice on 1502 reporting.
2. Ensure your ACH information (including routing transmittal number (RTN)) is correctly reflected in the FTA Lender Portal (see the above Procedural Notice for instructions).
3. Check the 1502 Dashboard frequently for any errors that must be corrected.

Resources available to all PPP lenders:

1. For submitting 1502 reports: contact the FTA at [email protected] or at 877-245-6159;
2. For setting up CAFS account: contact [email protected];
3. For other questions: please send an email to [email protected].

For more information, visit www.sba.gov/paycheckprotection or www.treasury.gov/cares