SBA Issues Promised Appeals Procedures for PPP Loan Review Decisions
Morrison Foerster – As we previously reported, when the Small Business Administration (SBA) issued its first Interim Final Rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities back in May,SBA explained that it could review a borrower’s Paycheck Protection Program (PPP) loan application or loan forgiveness application at any time to determine (a) if the borrower was eligible for the loan, (b) whether the borrower calculated the loan amount correctly, or (c) whether the borrower is entitled to loan forgiveness amounts claimed in the forgiveness application. This rule also stated that borrowers would have a chance to appeal SBA’s determination, promising to provide further guidance on that process in the future. That guidance came earlier this week when SBA issued an interim final rule detailing the procedures for the appeal process at the SBA’s Office of Hearings and Appeals (OHA).
