SBA / Treasury FAQ – 21. Do lenders need a separate SBA Authorization document to issue PPP loans?

Compliance > CARES Act
Q:  Do lenders need a separate SBA Authorization document to issue PPP loans?
 
A:  No. A lender does not need a separate SBA Authorization for SBA to guarantee a PPP loan. However, lenders must have executed SBA Form 2484 (Lender’s Application - Paycheck Protection Program Loan Guaranty) or SBA Form 2484-SD (Lender’s Application - Second Draw Loan Guaranty)27 to issue PPP loans and receive a loan number for each originated PPP loan. Lenders may include in their promissory notes for PPP loans any terms and conditions, including relating to amortization and disclosure, that are not inconsistent with the CARES Act, the Economic Aid Act, the PPP Interim Final Rules and guidance, and SBA Form 2484 or SBA Form 2484-SD.
 
 

This Q&A was based on information contained in the Treasury Department’s March 12, 2021, version of “Paycheck Protection Program Loans, Frequently Asked Questions,” which is updated from time to time.  This CARES Act / SBA / PPP related issuance may be found here:  https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

 

 

Add Feedback