On May 21, 2020, the U.S. Small Business Administration (“SBA”) released a notice informing lenders of how they may collect loan processing fees for eligible loans issued under the Paycheck Protection Program (“PPP”).
Pursuant to the CARES Act and the Interim Rule, issued by the SBA on April 2, 2020, the SBA will pay fees to lenders for processing eligible PPP loans at the following rates, based on the balance of the loan outstanding at the time of full disbursement:
- 5% for loans under $350,000;
- 3% for loans between $350,000 and $2 million; and
- 1% for loans over $2 million.
However, in order to collect the processing fee on a PPP loan, a lender must first report to the SBA that a loan has been fully disbursed using SBA Form 1502. The SBA will begin accepting these reports on fully disbursed PPP loans on May 22, 2020. Once the report is received, the SBA will initiate the process of paying the PPP processing fee for which the lender is eligible.