Peak Series – COVID19: PPP SBA Loan New 1502 Reporting and Forgiveness (Part I)

In our Peak Series we have been talking about SBA PPP Loans and we’re looking at transitioning out Peak Series to topics on RPA. However, because of the late changes around 1502 reporting and the upcoming forgiveness activity, we decided to extend our SBA PPP Series and cover a few additional topics. In this series wrap up we will briefly touch base on the following topics: PPP 1502 Reporting, PPP Processing Fee, PPP Forgiveness.

Lenders must report any PPP loans that have been fully disbursed to SBA via the SBA form 1502. Lender must electronically submit information to the SBA by the latter of: (1) May 29, 2020 or (2) 10 calendar days after disbursement of the PPP loan. Their after, lenders must submit PPP loan information to SBA on a monthly basis (similar to traditional SBA 7(a) loan reporting).

After receiving the 1502 report, the FTA (Fiscal Transfer Agent or Colson Services) will notify the lender of any errors through the 1502 Dashboard exception reporting. Lenders should monitor the 1502 Dashboard daily because they will have until 5:00 PM EST on the second business day after submitting the 1502 to correct any errors within the 1502 Dashboard. On the third business day after receiving the 1502 report and provided that the ACH information and one-time lender confirmation have been entered, SBA will initiate the process for payment of the processing fee to the lender.

Sometime back, Fiserv publicly announced they would be making changes to their LAS7114 program to accommodate reporting requirements for SBA PPP loans. For more information on how to automatically generate the SBA 1502 report for PPP loans along with a comma delimited output file that can be directly uploaded to Colson Services, Contact us today!

Stay tuned for Part II of PPP SBA Loan New 1502 Reporting and Forgiveness to learn more about PPP Processing fees and Forgiveness.