PAGE 1 of 3 EXPIRES: 4/1/22

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: Updated Notice on First Draw 

Paycheck Protection Program Loan Increases After 

Enactment of the Economic Aid Act 

CONTROL NO.: 5000-809631

EFFECTIVE: April 20, 2021

On January 13, 2021, SBA issued Procedural Notice 5000-20076, First Draw Paycheck 

Protection Program Loan Increases After Enactment of the Economic Aid Act (“EAA Loan 

Increases Notice”). The purpose of the EAA Loan Increases Notice was to provide procedures

for reapplications or requests for increases for certain First Draw PPP Loans that were approved 

on or before August 8, 2020.

The PPP Extension Act of 2021 (“Extension Act”) (Pub. L. 117-6), signed into law by the 

President on March 30, 2021, extended SBA’s authority to guarantee First Draw PPP Loans and 

Second Draw PPP Loans (collectively, “PPP Loans”) through June 30, 2021. The Extension Act 

contains an important restriction, which provides that from June 1, 2021 through June 30, 2021, 

SBA shall not accept new PPP Loan guaranty applications from Lenders and shall only process 

PPP Loan guaranty applications submitted by Lenders to SBA before June 1, 2021. This 

Updated Notice modifies the EAA Loan Increases Notice to reflect the Extension Act. Any 

provisions of the EAA Loan Increases Notice that are not modified by this Updated Notice 

remain in effect.

Increases on First Draw PPP Loans approved on or before August 8, 2020 to Eligible 

Partnerships, Seasonal Employers, and Farmers and Ranchers

Any request for an increase on a First Draw PPP Loan approved on or before August 8, 2020 and 

for which SBA has not remitted a forgiveness payment to the Lender on that loan, to an eligible 

partnership, seasonal employer, or a farmer or rancher must be submitted electronically in ETran by the Lender of Record on or before May 31, 2021, and any such request is subject to the 

availability of funds.
PAGE 2 of 3 EXPIRES: 4/1/22

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

Reapplications by Eligible Borrowers that Fully Repaid a First Draw PPP Loan before 

December 27, 2020

For reapplications by eligible PPP Borrowers that fully repaid their First Draw PPP Loan before 

December 27, 2020, Lenders must submit the new loan guaranty application in the Paycheck 

Protection Platform by 11:59 pm EDT on May 31, 2021, and any such reapplications are subject 

to the availability of funds.

Re-disbursements to Eligible Borrowers that Returned Part of a First Draw PPP Loan 

before December 27, 2020

Any re-disbursement (as described in paragraph 2 beginning on page 4 of the EAA Loan 

Increases Notice) to a PPP Borrower that returned part of First Draw PPP Loan before December 

27, 2020, where SBA has not remitted a forgiveness payment to the Lender on that loan, must be 

reported by the Lender on a 1502 report on or before May 31, 2021, and any such redisbursement is subject to the availability of funds.

Increases for Eligible Borrowers that did not accept the Full Amount of a First Draw PPP 

Loan for which they were Approved on or before August 8, 2020

If a PPP Borrower did not accept the full amount of the First Draw PPP Loan for which they 

were approved on or before August 8, 2020, the Lender did not process a decrease of the loan in 

E-Tran, and SBA has not remitted a forgiveness payment to the Lender on that loan, any 

disbursement of an increased amount up to the original approved amount must be reported by the 

Lender on a 1502 report on or before May 31, 2021, and any such disbursement is subject to the 

availability of funds.

If a PPP Borrower did not accept the full amount of the First Draw PPP Loan for which they 

were approved on or before August 8, 2020, the Lender processed a decrease of the loan in ETran, and SBA has not remitted a forgiveness payment to the Lender on that loan, the Lender of 

Record may process an increase on the loan up to the original approved amount by submitting 

the request for an increase electronically in E-Tran on or before May 31, 2021, and any such 

request is subject to the availability of funds.

Unresolved Borrowers

If the First Draw PPP Loan approved on or before August 8, 2020 has a Hold Code, the Lender 

of Record will receive notification from SBA when the Lender submits a request for an increase 

of the First Draw PPP Loan or submits a reapplication for a First Draw PPP Loan. If the Lender 

receives notification of the Hold Code, the Lender will not be able to process an increase on the 

First Draw PPP Loan, nor will the Lender be able to obtain an SBA loan number on a First Draw 

PPP Loan reapplication. Hold Codes must be resolved in accordance with Procedural Notice 

5000-808216, Second Notice of Revised Procedures for Addressing Hold Codes and Compliance 

Check Error Messages on PPP Loans, issued on March 29, 2021. If a Lender submits a request 

for an increase or a reapplication before June 1, 2021 and the First Draw PPP Loan has a Hold 
PAGE 3 of 3

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

Code, the Hold Code must be resolved and the request for increase or reapplication must be 

processed by 11:59 pm EDT on June 30, 2021, and is subject to the availability of funds. 

All dates in this Updated Notice are subject to the availability of funds and will change if funds 

are no longer available. SBA will be amending the Interim Final Rule on the Paycheck 

Protection Program as Amended by the Economic Aid Act, 86 FR 3692 (January 14, 2021), to

reflect the date change for loan increases as a result of the Extension Act. 

Questions

Lenders may call the Lender Hotline at (833) 572-0502 for live assistance regarding Paycheck 

Protection Platform access and support, policy questions and procedures, and Capital Access 

Financial System (CAFS) and SBA’s Electronic Transmission (E-Tran) systems support. 

Lenders may also direct general PPP forgiveness questions to PPPForgivenessRequests@sba.gov

and requests for advanced technical support, API support and UAT error support, to 

developer@ussbaforgiveness.com. 

Requests for assistance on SBA Paycheck Protection Platform navigation and platform user 

experience issues may be sent to help@ussbaforgiveness.com.

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

SBA Field Office.

Dianna L. Seaborn

Director

Office of Financial Assistance 

EXPIRES: 4/1/22