PPP step 6 - Leumi USA

Step 6: SBA Review of Bank’s Decision

SBA Audit And Record Retention

Loan Review

  • The SBA may review your PPP loan at any time as it deems appropriate. Regardless of the size of your loan, SBA may review:

    ✓ overall eligibility, including employee count (with or without affiliation rules) and nature of business, based on the PPP rules and guidance available at the time of your loan application;
    ✓ your calculation of the loan amount and use of the loan proceeds;
    ✓ your claimed loan forgiveness amount; and
    ✓ the accuracy of information, representations, and certifications submitted in connection with loan and forgiveness applications.

  • If we receive notice from the SBA that a review has been commenced, we are not permitted to approve your loan forgiveness until the SBA has completed its review. We will notify you within five (5) business days of our receipt of such notice from the SBA.
  • If the SBA determines that you may not be eligible for a PPP loan or to receive the loan or forgiveness amount you claimed, the SBA may contact you for additional information. Your failure to timely respond will result in a determination of ineligibility by the SBA.
  • If the SBA determines that you are not eligible for the PPP loan, the SBA will direct us to deny your forgiveness application. If the SBA determines that you are not eligible for the loan or forgiveness amount you claimed, the SBA will direct us to deny your forgiveness application in whole or in part. The SBA may also ask you to repay the outstanding PPP loan balance or pursue other available remedies.

Appeal Process

The SBA will issue additional guidance on how to appeal any ineligibility determination made by the SBA.

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.