PAGE 1 of 1 EXPIRES: 1-1-22

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

Must be accompanied by SBA Form 58

Federal Recyling Program Printed on Recycled Paper

SBA Procedural Notice

TO: All SBA Employees and Paycheck Protection 

Program Lenders

SUBJECT: Repeal of EIDL Advance Deduction

Requirement for SBA Loan Forgiveness 

Remittances to PPP Lenders

CONTROL NO.: 5000-20075

EFFECTIVE: January 8, 2021

Section 1110(e)(6) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) 

required SBA to deduct the amount of any Economic Injury Disaster Loan (EIDL) Advance 

received by a PPP borrower from the PPP forgiveness payment remitted by SBA to the PPP

lender. On October 2, 2020, SBA began remitting forgiveness payments to PPP lenders, with the 

required EIDL Advance deductions. On December 27, 2020, the President signed the Economic 

Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act), which 

repealed Section 1110(e)(6) of the CARES Act.1 

In order to implement the repeal, the Forgiveness Platform has been updated and, effective 

immediately, SBA will no longer deduct EIDL Advances from forgiveness payments remitted to 

PPP lenders. This change will be applied to SBA forgiveness payments with a status of 

“Payment Confirmed” dated December 29, 2020 or later. 

For those loans where SBA remitted a forgiveness payment to a PPP lender that was reduced by 

an EIDL Advance, SBA will automatically remit a reconciliation payment to the PPP lender for 

the previously-deducted EIDL Advance amount, plus interest through the remittance date. PPP 

lenders are not required to request remittance of the reconciliation payment.

SBA will identify forgiveness payments that were reduced by EIDL Advances and automatically 

remit a reconciliation payment to the ACH account identified by the PPP lender in the 

Forgiveness Platform. Upon confirmation that the payment has been accepted by the PPP lender, 

SBA will generate a Notice of Paycheck Protection Program Reconciliation Payment that will be 

available in the Forgiveness Platform. 

1 See Section 333 of the Economic Aid Act.
PAGE 2 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 Recyling Program Printed on Recycled Paper

The PPP lender is responsible for notifying the borrower of the reconciliation payment. The PPP 

lender is also responsible for re-amortizing the loan and notifying the borrower of the amount of 

the next payment due, or advising the borrower that the loan has been paid in full, whichever is 

applicable. If the amount remitted by SBA to the PPP lender exceeds the remaining principal 

balance of the PPP loan (because the borrower made a payment on the loan), the PPP lender 

must remit the excess amount, including accrued interest paid by the borrower, to the borrower.

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

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

Jihoon Kim

Director

Office of Financial Program Operations