COVID-19 Update: SBA Guidance on Identification, Reporting of Suspicious Activity in EIDL


The U.S. Small Business Administration (SBA) has issued Notice 5000-20037: Guidance Regarding Identification and Reporting of Suspicious Activity in the COVID-19 EIDL Loan Program.

The purpose of this notice is to provide a brief overview of the COVID-19 assistance available under SBA’s Economic Injury Disaster Loan (EIDL) Program, including both advances (grants) and direct loans, and to alert depository financial institutions to the potential for suspicious activity related to COVID-19 EIDL funds deposited into business or personal accounts. This notice also provides points of contact at SBA for depository financial institutions to report suspicious activity in the COVID-19 EIDL loan program.

SBA’s PPP Procedural Notice: Loan Forgiveness Decisions; Supporting Documentation; Requests for Forgiveness Payments to SBA

The SBA has also issued a procedural notice to Paycheck Protection Program (PPP) lenders regarding the processes for submitting decisions on PPP borrower loan forgiveness applications to SBA, requesting payment of the forgiveness amount determined by the lender, and SBA loan forgiveness reviews and payment of the loan forgiveness amount determined by SBA.

The SBA Procedural Notice explains that SBA has partnered with a financial services technology provider, Goldschmitt-CRI, to make available a secure SaaS platform (the PPP Forgiveness Platform) to accept loan forgiveness decisions, supporting documentation, and requests for forgiveness payments. The PPP Forgiveness Platform is available only to PPP Lenders, not PPP borrowers. This platform makes available a user interface for lenders to upload required data and documentation, monitor the status of the forgiveness request, and respond to SBA in case of an inquiry or if SBA selects the loan for review.

SBA will post a link to the PPP Forgiveness Platform on its website. The PPP Forgiveness Platform will go live and begin accepting lender submissions on Aug. 10, subject to extension if any new legislative amendments to the forgiveness process necessitate changes to the system.

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