Lenders that participated in the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) can begin reporting on PPP loans and collecting the processing fee on fully disbursed loans that they are eligible to receive, NCUA said in an email message to credit unions Thursday.
The message from NCUA is based on a procedural notice issued by the SBA Thursday on the program, which was established under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The SBA requires that lenders use SBA Form 1502 to report fully disbursed loans to SBA. NCUA, in its brief message to credit unions, said credit unions “should ensure their ACH information is inputted into the Fiscal Transfer Agent Lender portal.”
SBA’s procedural notice states that under the PPP interim final rule, the SBA will pay lenders fees for processing PPP loans, based on the balance of the loan outstanding at the time of full disbursement, in the following amounts:
- 5% for loans of not more than $350,000;
- 3% for loans of more than $350,000 and less than $2 million; and
- 1% for loans of at least $2 million.
In the Lender’s Fiscal Transfer Agent (FTA) Lender portal, the lender “must have provided ACH credit information for an account owned by the lender and must make a one-time confirmation that all PPP loans for which the lender will be requesting a processing fee have been fully disbursed on the disbursement dates and in the loan amounts reported,” the notice states.
Upon receipt of a complete set of SBA Form 1502 data, SBA says it will:
- Confirm that no previous request has been made for a processing fee on the loan, and no processing fee payment has been made previously by SBA on the loan.
- Confirm that the disbursed amount reported on the 1502 report matches the approval amount in E-Tran.
- Calculate the processing fee owed based on the final fully disbursed amount entered by the lender.
- Submit the fee calculated by SBA to the Lender using the ACH credit information provided by the lender.
It also notes that before they can receive a PPP processing fee or begin monthly loan reporting, lenders they must establish a lender portal account with the FTA to access the 1502 Dashboard. “Existing SBA Lenders with SBA Form 750 agreements will access the 1502 Dashboard with their current FTA Lender portal account,” the notice states. “Lenders must use separate 1502 reports for PPP loans and regular 7(a) loans.”
Additional details are in the procedural notice (linked below).
SBA Procedural Notice (May 21, 2020)