SBA issues NAFCU-sought 1502 guidance for PPP
The Small Business Administration (SBA) Thursday issued a NAFCU-sought procedural notice related to lender reporting via Form 1502. Last week, NAFCU wrote the SBA seeking additional guidance on several fronts, including the reimbursement of lender fees and 1502 reporting.
According to the notice, the SBA will begin accepting 1502 reports on fully disbursed or canceled PPP loans May 22. In order to submit the reports:
- lenders, including all Loan Service Providers (LSPs) as they cannot share credentials with a lender, must create an account in the Fiscal Transfer Agent (FTA) lender portal; and
- existing SBA lenders (those with a Form 750 agreement in place) must use separate 1502 reports for PPP loans and regular 7(a) loans.
Information on how to enroll with the FTA, including differences in the information lenders and LSPs must provide, is specified in the procedural notice.
After the lender has successfully completed the enrollment email, the FTA will send login credentials in a separate email, including a 1502 dashboard user ID and access code. Through the lender portal, the lender must provide ACH information and make a one-time confirmation that all PPP loans for which a processing fee is requested have been fully disbursed on the dates and in the amounts reported in the 1502 report.
Lenders must electronically submit SBA Form 1502 reporting information to the SBA by the later of:
- May 29, 2020; or
- 10 calendar days after disbursement or cancellation of a PPP loan.
After filing the initial 1502 report according to the above specified dates, lenders must submit PPP loan information to SBA on a monthly basis. To report loans that are canceled before disbursement or voluntarily terminated and repaid after disbursement, the lender must report this in E-Tran or on the 1502 report. If the lender reports the canceled loan via E-Tran, they must not report it again on the 1502 report.
The SBA may review the payment of lender processing fees at the time of forgiveness purchase or any other time the SBA deems appropriate. If the SBA determines the fee was paid erroneously or in an incorrect amount, the lender is responsible for repaying the fee to the SBA. Also, if a lender fails to satisfy the requirements of section III.3.b. of the initial interim final rule or the document collection and retention requirements described in SBA Form 2484, then the fee may be subject to clawback.
NAFCU will continue working with the SBA to obtain guidance necessary to ensure credit unions' effective participation in the PPP. Access NAFCU's updated PPP FAQs.