SBA update on Paycheck Protection Program


I received this update this morning (4/2/2020) from Tim Ensch, Lender Relations Specialist with the SBA (, (216) 522-4190).

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Paycheck Protection Program

  • "We’re aware that several fact sheets on the Paycheck Protection Program (PPP) was posted on the treasury website, and we consider this information reliable.
  • The attached Application is also circulating.  There is a SAMPLE of it posted to the SBA’s website, but the version here appears to be more final and is from Treasury:
  • Please be patient.  Lenders are aggressively asking all the right questions, but we don’t have any more information at the Field level than you do. 
  • If you would like to take a considered approach, I would invite lenders at your institution to come up with a combined list of questions for the District, and I will try to compile them in a FAQ. Email me one email with PPP FAQ in the subject.

Payment Relief

The CARES Act established payment relief for SBA programs as well. 

  • Under the CARES Act, 7(a) Borrowers are relieved of any obligation to  pay the principal, interest and any associated fees that are owed on a 7(a) loan in a regular servicing status (including Community Advantage loans) for a 6-month period beginning with the first payment due on a loan after March 27, 2020. 
  • SBA will pay this first loan payment to the Lenders within 30 days of the first loan payment due date after March 27, 2020. If a Lender receives a loan payment from a Borrower after March 27, 2020, the Lender must inform the Borrower that it has the option of the Lender either returning the loan payment to the Borrower or applying the loan payment to further reduce the loan balance after application of SBA’s payment.
  • To make the first payment, SBA will need Lenders to provide the gross monthly loan amount due (that includes both the guaranteed and non-guaranteed portions of the loan) as soon as possible to the FTA. SBA will provide further guidance to Lenders on the method and the date by which Lenders must provide the gross monthly loan amount.

FTA means Fiscal Transfer Agent, which is Colson Services.  We will have to see what documentation Colson may request.

Finally, I have received direction that: “SBA will be providing more guidance to lenders shortly which will provided through their respective banking and trade associations. This will happen in the next 24 hours.”  I infer from this that the first information releases will likely be through trade organizations, rather than field offices.  Additional information will be forthcoming."

For detailed information on SBA programs for the coronavirus, visit and for information on all federal programs, visit or (en Español).

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