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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: Paycheck Protection Program Borrower 

Resubmissions of Loan Forgiveness Applications 

Using Form 3508S, Lender Notice Responsibilities 

to PPP Borrowers, and Offset of Remittances to 

Lenders for Lender Debts

CONTROL NO.: 5000-20077

EFFECTIVE: January 15, 2021

The purpose of this Notice is to inform Paycheck Protection Program (PPP) lenders of (1) the 

process for borrower resubmission of loan forgiveness applications using PPP Loan Forgiveness 

Application Form 3508S (SBA Form 3508S); (2) lender responsibilities to notify borrowers of 

(a) lender decisions to deny forgiveness in full, (b) SBA loan review decisions and borrower 

appeal rights to SBA’s Office of Hearings and Appeals (OHA), and (c) SBA remittance of loan 

forgiveness payments; and (3) lender responsibilities in the event of offset of PPP remittances to 

lenders by the Treasury Offset Program (TOP). 

I. Borrower Resubmission of a Loan Forgiveness Application using SBA Form 

3508S

A borrower that is eligible to use SBA Form 3508S, but applied for loan forgiveness using PPP 

Loan Forgiveness Application Form 3508EZ or 3508, may resubmit its loan forgiveness 

application to its lender using SBA Form 3508S at any time until SBA notifies the lender of a

final SBA loan review decision or remits to the lender the PPP loan forgiveness payment. If a 

lender receives a timely borrower resubmission of a loan forgiveness application using SBA 

Form 3508S, the lender should promptly request the withdrawal of any lender loan forgiveness 

decision by notifying SBA through the SBA Paycheck Protection Platform.

1

 Resubmissions 

after SBA notifies the lender of a final SBA loan review decision or remits to the lender the PPP 

loan forgiveness payment are not permitted. 

After a borrower’s resubmission of a complete loan forgiveness application, the lender must 

issue a decision to SBA on the new loan forgiveness application not later than 60 days after 

receipt of the complete loan forgiveness application. When the lender issues its forgiveness 

decision to SBA on the new loan forgiveness application, SBA will, subject to any SBA review

1 https://forgiveness.sba.gov/accounts/login/?next=/.
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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

of the loan or loan application, remit the appropriate forgiveness amount to the lender, plus any 

interest accrued through the date of payment, not later than 90 days after the lender issues its 

forgiveness decision to SBA. 

II. Notification Responsibilities

Lenders must keep borrowers informed of certain actions during the PPP loan forgiveness 

process. Specifically, lenders must notify borrowers in writing within 5 business days of any of 

the following:

• A decision by the lender to deny forgiveness in full.

• A decision by SBA declining a request for review by a borrower of a lender’s decision to 

deny forgiveness in full.

• A final SBA loan review decision, including an SBA loan review decision on forgiveness 

(whether approving or denying forgiveness in full or part). 

• Remittance by SBA to the lender of the loan forgiveness amount, whether partial or full.

The information that lenders must include with their notifications to borrowers is described 

below. After sending the notification to the borrower, the lender must upload a copy of the 

notification correspondence to the SBA Paycheck Protection Platform.

Lenders must take care to avoid providing erroneous information to borrowers regarding requests 

for SBA review of lender loan forgiveness decisions2 or regarding borrower appeal rights, which 

are limited to certain specific circumstances, as described below. 

A. Lender Decision to Deny Forgiveness in Full

If the lender issues to SBA a decision denying the borrower’s loan forgiveness application in 

full, the lender must notify the borrower in writing of that decision. Such notice to the borrower 

must be provided within 5 business days and include the reasons that the lender concluded that 

the borrower is not entitled to loan forgiveness in any amount and inform the borrower that the 

borrower has 30 calendar days from receipt of the notification to seek, through the lender, SBA 

review of the lender’s decision. Lenders are to upload a copy of the notification correspondence 

to the SBA Paycheck Protection Platform at the time the lender submits its full denial decision to 

SBA as directed in Paragraph II above. 

Lenders that receive from borrowers requests for SBA review of full denial of forgiveness 

decisions must submit those requests to SBA through the SBA Paycheck Protection Platform 

within five business days of receipt. SBA will accept or decline in its sole discretion borrower 

requests for review of lender forgiveness full denial decisions. SBA will notify the lender if 

SBA decides to review the lender’s decision or if SBA declines a borrower’s request for review. 

If the borrower does not timely request SBA review or if SBA declines the request for review, 

the lender is responsible for notifying the borrower of the date on which the borrower’s first PPP

2 In accordance with PPP rules and guidance, a borrower may request SBA review only of a lender decision denying

loan forgiveness in full. 
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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

loan payment is due and the amount of the payment.3 If SBA decides to review the lender’s 

decision, SBA will issue an SBA final loan review decision to the lender upon completion of 

SBA’s review. The lender must send a copy of that decision to the borrower as described in 

Paragraph II.B below. 

B. SBA Loan Review Decision

When SBA selects a PPP loan for an SBA loan review, SBA will provide the lender with a 

Notification of Paycheck Protection Program Loan Review (Loan Review Notification) through 

the SBA Paycheck Protection Platform. The Loan Review Notification will require the lender to 

upload certain additional documents to the SBA Paycheck Protection Platform, in accordance 

with PPP rules and guidance. After completion of the loan review, SBA will issue a final SBA 

loan review decision (which is an official written decision by SBA) to the lender through the 

SBA Paycheck Protection Platform. 

When SBA issues a final SBA loan review decision to a lender, the lender must provide a copy 

of SBA’s decision to the borrower within 5 business days of the date of the decision. The SBA 

loan review decision will generally include the reasons for SBA’s decision, and, if applicable, 

the amount approved in the lender’s forgiveness decision and the forgiveness amount determined 

by SBA. 

Any final SBA loan review decision that is appealable to OHA by the borrower will include a 

notice of the borrower’s right to appeal the decision in accordance with SBA’s interim final rule 

“Appeals of SBA Loan Review Decisions Under the Paycheck Protection Program.”4 Pursuant 

to 13 CFR § 134.1201(b), a PPP borrower has the right to appeal to OHA only a final SBA loan 

review decision that finds a borrower:

1. was ineligible for a PPP loan; 

2. was ineligible for the PPP loan amount received or used the PPP loan proceeds for 

unauthorized uses; 

3. is ineligible for PPP loan forgiveness in the amount determined by the lender in its 

full approval or partial approval decision issued to SBA; and/or 

4. is ineligible for PPP loan forgiveness in any amount when the lender has issued a full 

denial decision to SBA.

If no final SBA loan review decision was issued or if the final SBA loan review decision that 

was issued does not fall into one of the four categories above, the borrower does not have a right 

to appeal to OHA, and the lender must not provide the borrower with any erroneous information

to the contrary. Additionally, a borrower cannot file an OHA appeal of any decision made by a 

lender concerning a PPP loan. 13 CFR § 134.1201(c).

3 If the lender issues a loan forgiveness decision other than denying forgiveness in full (i.e., if the lender’s decision 

approves forgiveness in full or in part), the lender must notify the borrower after the lender receives SBA’s final 

loan review decision or SBA’s remittance of a loan forgiveness payment, as described below.

4 85 FR 52883 (Aug. 27, 2020).
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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

Any appeal to OHA must be made in accordance with the SBA Rules of Practice for Appeals of 

Certain SBA Loan Review Decisions Under the Paycheck Protection Program, located at 13 

CFR §§ 134.1201-134.1217, including but not limited to the following:

• An appeal petition must be filed with OHA within 30 calendar days after the 

borrower’s receipt of the final SBA loan review decision, or notification by the lender 

of the final SBA loan review decision, whichever is earlier. 13 CFR § 134.1204.

• The borrower’s appeal petition must include the basis for OHA’s jurisdiction, 

including evidence that the appeal is timely filed. 13 CFR § 134.1202(a)(1).

• The appeal must include a copy of the final SBA loan review decision that is being 

appealed. 13 CFR § 134.1202(a)(2).

An appeal to OHA (and a subsequent request for review by the Administrator of a disputed 

initial decision or reconsidered initial decision) are administrative remedies that must be 

exhausted before judicial review of a final SBA loan review decision may be sought in a federal 

district court. 13 CFR § 134.1216.

In accordance with SBA’s PPP rules and guidance, borrowers may not appeal to OHA if, among 

other circumstances, the lender has issued a forgiveness decision to SBA in an amount that is 

less than the forgiveness amount requested by the borrower and SBA has remitted to the lender a 

forgiveness payment equal to the amount in the lender’s forgiveness decision.

Note: OHA is currently reviewing 13 CFR § 134 Subpart L for potential redrafting. However, 

until there is a final rule update, these specific citations remain accurate and in effect.

C. Remittance of Any Portion of the Loan Forgiveness Amount by SBA to the Lender

If SBA has not provided a Loan Review Notification to the lender (i.e., the PPP loan has not 

been selected for an SBA loan review), SBA will issue a Notice of Paycheck Protection Program 

Forgiveness Payment (Payment Notice) to the lender when it remits a loan forgiveness payment. 

The Payment Notice will provide information about the forgiveness remittance and will be 

available to the lender through the SBA Paycheck Protection Platform. 

If SBA issues a Loan Review Notification advising the lender that the loan has been selected for 

an SBA loan review, SBA will issue a final loan review decision upon completion of the review. 

The final loan review decision may be accompanied by a loan forgiveness payment to the lender, 

if appropriate. When SBA remits a loan forgiveness payment to the lender, the lender must 

notify the borrower in writing of the remittance. The lender must notify the borrower within 5 

business days of receipt and provide the borrower with a copy of the Payment Notice generated 

by the SBA Paycheck Protection Platform or SBA’s final loan review decision, as applicable. 

The additional information that the lender is expected to include with its notification to the 

borrower depends on the circumstances:

• If the lender issued a partial approval decision to SBA (i.e., the amount of the lender’s 

forgiveness decision was less than the forgiveness amount requested by the borrower) 

and SBA remits the full amount approved by the lender, then the lender’s notification to 

the borrower must include the lender’s decision, including the reasons the lender 

approved forgiveness in part but not in full. The lender’s notification to the borrower 
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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

must not indicate that the borrower may appeal the lender’s decision to OHA, because the 

borrower has no such appeal right to OHA in this circumstance. 

• If SBA remits an amount different from the amount approved by the lender, the lender’s 

notification to the borrower must include a copy of the final SBA loan review decision, as 

described in Paragraph II.B above, which will notify the borrower of its right to appeal 

the decision to OHA.

• If SBA remits a forgiveness payment for the full amount of the PPP loan, the lender must 

notify the borrower within five business days of the remittance by SBA. The lender also 

must mark the borrower’s note for the PPP loan as “Paid in Full” and include the note in 

the notification to the borrower. Although the note is marked “Paid in Full,” the forgiven 

amount is considered canceled indebtedness under Section 1106(c)(1) of the CARES Act. 

In addition, in any case in which SBA remits a partial forgiveness payment for a portion of the 

PPP loan amount, the lender must notify the borrower within 5 business days of the remittance 

by SBA. The notification to the borrower should state that the remaining balance on the loan 

must be repaid by the borrower on or before the maturity date of the loan and specify the date on 

which the borrower’s first payment will be due and the amount of that payment. The lender must 

report the loan’s remaining balance on the next SBA Form 1502 Report the lender submits for 

the PPP loan. 

III. TOP Offsets of Remittances to Lenders for Lender Debts

Forgiveness payment remittances made by SBA to lenders are subject to offset for delinquent 

debts registered with TOP that the lender owes to the United States, a State, the District of 

Columbia, Guam, the Virgin Islands, or Puerto Rico. If a lender has a debt that is active for 

collection in TOP, any forgiveness payments remitted by SBA to the lender will be offset until 

the lender’s debt has been paid in full or otherwise resolved. If an SBA forgiveness payment is 

offset, in whole or in part, the lender must credit the borrower’s PPP loan for the full amount of 

the funds that SBA approved for remittance to the lender (before offset) as set forth in the 

Payment Notice generated by the SBA Paycheck Protection Platform or SBA’s final loan review 

decision. After the loan has been credited, the lender must report the remaining amount of the 

loan, if any, on the next SBA Form 1502 Report submitted by the lender for the PPP loan. 

Lenders that fail to timely and properly credit a borrower’s PPP loan for the full amount of the 

funds that SBA approved for remittance to the lender (before offset) will be subject to SBA 

action, as appropriate. Lenders can obtain further information about their debts in the TOP 

through the Treasury Department’s website at https://fiscal.treasury.gov/top/contact.html. 

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