The SBA today will begin remitting reconciliation payments for Paycheck Protection Program loans with a forgiveness payment that was reduced by the amount of an Economic Injury Disaster Loan advance.
In a notice issued last night, the agency said PPP lenders are not required to request remittance of the reconciliation payment. The SBA will automatically identify affected loans and issue payments through Friday, Feb. 19.
The reconciliation payment will equal the previously deducted EIDL advance amount, plus interest through the remittance date. The payment amount will be displayed on the Payment Dashboard under the Adjustment column.
As advocated by ICBA and community banks, the end-of-year stimulus package fully forgives EIDL advances to ensure they are not deducted from PPP loan forgiveness amounts.
The SBA also issued an updated Procedural Notice on the process of reporting PPP loans and collecting processing fees. The notice includes the fee structure for first- and second-draw loans and includes information on requesting payment, creating lender portal accounts, reporting on fully disbursed loans, and more.
Additional PPP information and resources are available on the SBA and Treasury sites, ICBA's PPP and EIP News page, the Independent Bankers Association of Texas's matrix of PPP updates in the stimulus law, and ICBA's summary of the stimulus package's community banking provisions.
