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Iowa Bankers Association
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Johnston, IA 50131
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Small Lenders to Be Given Access to PPP Friday

Media Center:Small Lenders to Be Given Access to PPP Friday

Last Updated: 1/15/2021 2:18 PM

Small Lenders to Be Given Access to PPP Friday

The U.S. Small Business Administration and the Treasury Department will open up the Paycheck Protection Program portal to lenders with $1 billion or less in assets as of Dec. 31, 2019 to process new and second-draw applications this Friday. All other lenders will gain access next Tuesday.

The SBA’s Iowa District Office also confirmed in a lender update this week that the new round of PPP requires lenders to register their lending institution as an entity on SAM.gov no later than 30 days after disbursement of their first PPP loan made after Dec. 27, 2020. The update also noted that at this time, lenders are not required to check SAM for PPP applicants as they would for 7(a), 504 and SBA microloan loans. The update noted that many questions cannot be addressed until guidance has been issued.

The SBA also issued a procedural notice this week on when PPP borrowers may reapply for a first-draw loan or request an increase on a first-draw PPP loan made between April 3 and Aug. 8. The notice states that increases must be made by March 31, 2021. It also notes that if the SBA has remitted a forgiveness payment to the lender, an increase is not allowed and increases are limited to:

  • Partnerships.
  • Seasonal employers.
  • Farmers and ranchers.
  • Eligible borrowers that fully repaid a first-draw loan prior to Dec. 27, 2020.
  • Borrowers who returned part of a first-draw loan prior to Dec. 27, 2020.
  • Borrowers who did not accept the full amount of a first-draw loan for which they were approved.

Resources on how to make an increase in E-Tran as well as how to make changes to loan statuses and loan amount for 1502 reporting can be found here.

Lenders may call the Lender Hotline at 833-572-0502 with policy questions and procedures. For additional questions regarding the new round of the PPP, please contact Bob Hartwig at 515-286-4211 or Mike Rozenboom at 605-595-2162. IBA members are also encouraged to email the IBA at compliance@iowabankers.com.

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