ICBA release PPP, EIDL, EIDL Advance, and Stimulus Package
ICBA Community Banking Resource Page
PPP Loan Forgiveness
New Portal User Guides
Updated First Draw Forms
Second Draw Forms
Guidance & Resources
1/8/2021 SBA announcement on the PPP launch:
More information is available here:
FAQ's from the Independent Bankers Association of Texas
When may lenders begin processing loan increase on First Draw PPP loans?
Lenders may approve increases on First Draw PPP loans starting on January 25, 2021.
Is a loan that is forgiven eligible for a First Draw PPP loan increase?
If the SBA has remitted a forgiveness payment on the First Draw PPP loan, no loan increase or reapplications are allowed.
Is a loan that has been submitted for forgiveness eligible for a First Draw PPP loan increase?
Yes. Loans that have been submitted for forgiveness, but where SBA has not yet remitted a forgiveness payment are eligible for an increase. . This applies to all PPP loans, including loans to partnerships, seasonal employers and farmers and ranchers.
Must the customer use the same bank for a loan increase on a First Draw loan?
First Draw PPP loan increases can be made only by the lender of record. This is the current owner of the First Draw PPP loan. If the First Draw PPP loan was sold after loan origination, then the Lender of Record is the lender that purchased the loan.
Can a loan that was fully repaid be eligible for reapplication?
Yes, if the loan was fully repaid by the borrower returning the original loan amount and the lender reported the loan as “cancelled” or “paid in full” before December 27, 2020. In these instances, the borrower may reapply for a new First Draw PPP loan in an amount for which the borrower is eligible under PPP rules. The Procedural Notice includes directions on changing a borrower’s loan status from “paid in full” to “cancelled” to allow the borrower to reapply under the First Draw PPP rules.
Can a borrower that returned part of a First Draw PPP loan apply to receive those returned funds again?
Yes. If a borrower returned part of their First Draw PPP loan (and the SBA has not yet remitted a forgiveness payment), the lender may approve a borrower’s request for a loan increase and re-disburse funds equal to the difference between the amount retained by the borrower and the amount previous approved.
Can a borrower that did not accept the full amount of a First Draw PPP loan apply for the additional amount for which they are eligible?
Yes. In these instances the borrower may receive a loan increase up to the among for which the borrower was originally eligible, if the SBA has not yet remitted a loan forgiveness payment on the original loan. The procedural notice provides details on how these situations should be handled within E-Tran.
Are loans under review by the SBA eligible for First Draw increases?
Where a loan is under review by the SBA, the borrower will be deemed an “unresolved borrower” and will not be eligible for a loan increase until the loan is resolved by the Small Business Administration.
Will lenders receive processing fees for loan increases?