Step 5: Bank Review of Your Application
How Bank Will Review Your Application
We will review each forgiveness application for completeness and confirm the following information reported in your application based on the supporting documents submitted with your package:
- cash compensation,
- non-cash compensation,
- compensation to owners,
- business mortgage interest payments,
- business rent or lease payments, and
- business utility payments.
We will check your calculation of the loan forgiveness amount. However, it is your responsibility to provide accurate information and calculations on your application.
Timing of Bank’s Decision and What Decision You Can Expect
Within 60 days of receiving a complete application, we will issue a decision regarding your loan forgiveness application to the SBA. Our decision may take the form of:
- approval in whole or in part,
- denial, or
- denial without prejudice due to a pending SBA review, if directed by the SBA.
We will notify you in writing regarding the decision we issue to the SBA.
What Our Decisions Mean
- If we approve in whole or in part, and the SBA agrees with our decision, the SBA will pay us the principal amount forgiven, plus any accrued interest, within 90 days after we issue the approval. This timing may be delayed if the SBA decides to review your
PPP loan or loan forgiveness. If applicable, the SBA will deduct from the forgiveness amount any advance you received on an SBA Economic Injury Disaster Loan, which will equally reduce the amount we forgive on your PPP loan.
- If we deny your forgiveness application, you may notify us within 30 days of your receipt of the denial notice to seek the SBA’s review of our decision. We will inform you whether the SBA declined your request for review, or if accepted by the SBA, the results of the review.
- If your forgiveness application is denied without prejudice pending an SBA review, you may request us to reconsider your loan forgiveness upon completion of the SBA review unless the SBA has determined that you were ineligible for a PPP loan.
Please read “SBA Audit and Record Retention” in Step 6 regarding how the SBA will review your PPP loan or loan forgiveness.
None of the information should be construed as legal advice or an assurance that the SBA will agree with the Bank’s standards. If you have any questions regarding your application, please refer to the SBA resources provided on page 2 of this notice and speak with your legal advisor or accountant.