PAGE 1 of 2 EXPIRES: 1-1-22

SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete

Must be accompanied by SBA Form 58

Federal Recycling Program Printed on Recycled Paper

SBA Procedural Notice

TO: All SBA Employees and Paycheck 

Protection Program Lenders

SUBJECT: SBA Paycheck Protection Platform 

Procedures for Addressing Unresolved Issues on 

Borrower First Draw PPP Loans

CONTROL NO.: 5000-20083

EFFECTIVE: January 26, 2021

This Notice is to inform SBA employees and Lenders of upcoming SBA Paycheck Protection 

Platform (platform) procedures to address loan processing for Second Draw PPP Loan guarantee 

applications where there is an unresolved issue on the Borrower’s First Draw PPP Loan.

As outlined in the Interim Final Rule for Second Draw PPP Loans, if a First Draw PPP Loan is 

under review pursuant to PPP rules and/or information in SBA’s possession indicates that the 

Borrower may have been ineligible for the First Draw PPP Loan it received or for the loan 

amount received by the Borrower, the Lender will receive notification from SBA when the 

Lender submits an application for guarantee of a Second Draw PPP Loan (“unresolved 

Borrower”). See 86 FR 3712, 3722 (January 14, 2021).

Beginning on Wednesday, January 27th, the platform will begin to process new Second Draw 

PPP Loan guarantee applications for unresolved Borrowers. These Second Draw submissions 

will be moved automatically to a research status, and the platform will provide the Lender an 

opportunity to submit documentation into the platform to support the resolution of the 

outstanding First Draw issue(s). SBA will provide information regarding the unresolved issue(s) 

and guidance as to types of documentation that may assist with resolution. It is imperative that 

Lenders respond timely, as SBA will need time to review the documentation to determine 

whether the unresolved issue(s) can be cleared. Lenders should work with their Borrowers to 

assess the situation. If the Lender and the Borrower feel confident that the issue(s) can be 

resolved, they should obtain the necessary documentation and the Lender should submit it to the 

platform. Once resolved by SBA, these Second Draw Loan guarantee applications will be 

automatically submitted into the next stage of processing and will not require re-entry by the 

Lender. If the Borrower believes that there is an issue that cannot be resolved, the Second Draw 

PPP application should be withdrawn by the Lender in the platform.
PAGE 2 of 2

SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete

Must be accompanied by SBA Form 58

Federal Recycling Program Printed on Recycled Paper

Lenders that submitted a Second Draw PPP Loan guarantee application before January 27, 2021, 

that was rejected due to an unresolved issue with the First Draw PPP Loan, should resubmit 

these applications.

Additional details can be found on the technical documentation provided to all platform API 

vendors. SBA will provide additional instructions in the Platform User Guide to reflect any 

changes to the platform.

For more information on the next round of PPP, see PPP as Amended by Economic Aid Act (86 

FR 3692, January 14, 2021) and PPP Second Draw Loans (86 FR 3712, January 14, 2021).

Additional resources pertaining to the Economic Aid Act and PPP – including application forms, 

Lender guidance, and PPP program rules – can be found on SBA’s PPP website or the U.S. 

Treasury PPP website.

Questions:

Questions concerning this Notice may be directed to the Lender Relations Specialist in the local 

SBA Field Office, which can be found at https://www.sba.gov/tools/localassistance/districtoffices.

Jihoon Kim

Director

Office of Financial Program Operations

EXPIRES: 1-1-22