{"id":2120,"date":"2022-04-11T09:15:51","date_gmt":"2022-04-11T13:15:51","guid":{"rendered":"https:\/\/nhkllp.com\/?p=2120"},"modified":"2022-04-02T09:33:51","modified_gmt":"2022-04-02T13:33:51","slug":"ppp-forgiveness-application-was-denied","status":"publish","type":"post","link":"https:\/\/nhkllp.com\/ppp-forgiveness-application-was-denied\/","title":{"rendered":"My PPP Loan Forgiveness Application was Denied \u2013 Now what?"},"content":{"rendered":"

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Last May, the Paycheck Protection Program (\u201cPPP\u201d) closed to new PPP loan applications, and the next phase of the PPP \u2013 loan forgiveness \u2013 began picking up steam. PPP loan borrowers have ten months from the end of their loans\u2019 \u201ccovered period\u201d (or period to use the loan proceeds for authorized purposes) to apply for loan forgiveness. After that, depending on whether a lender is participating in the United States Small Business Administration\u2019s<\/a> (\u201cSBA\u201d) direct loan forgiveness application, borrowers might be able to apply for forgiveness directly with the SBA.\u00a0 According to the SBA, more than a million forgiveness applications had been submitted directly to the SBA through their loan forgiveness portal by the beginning of last fall. If borrowers cannot apply directly through the SBA, they will have to apply through their respective PPP lenders.\u00a0\u00a0<\/span><\/p>\n

If the SBA issues a written decision denying the borrower\u2019s forgiveness application, the PPP borrower needs to understand the appeals process and be ready to act quickly.\u00a0<\/span><\/p>\n

What kind of PPP loan forgiveness decision can you appeal?<\/span><\/h2>\n

A borrower may only appeal, to the SBA\u2019s Office of Hearings and Appeals, an official written decision by the SBA, after SBA completes a review of a PPP loan<\/a> that finds a borrower:<\/span><\/p>\n

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  1. Was ineligible for a PPP loan;\u00a0<\/span><\/li>\n
  2. Was ineligible for the PPP loan amount received or used the PPP loan proceeds for unauthorized uses;\u00a0<\/span><\/li>\n
  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 (except for the deduction of any Economic Injury Disaster Loan advance in accordance with section 1110(e)(6) of the CARES Act); and\/or<\/span><\/li>\n
  4. Is ineligible for PPP loan forgiveness in any amount when the lender has issued a full denial decision to SBA.<\/span><\/li>\n<\/ol>\n

    Additionally, a borrower cannot appeal a lender\u2019s decision denying forgiveness; but the borrower has other possible remedies if presented with just a decision from the lender.\u00a0<\/span><\/p>\n

    How long do you have to appeal a decision?<\/span><\/h2>\n

    A borrower must file an appeal petition within 30 calendar days after (i) the borrower\u2019s receipt of the final SBA loan review decision or (ii) notification by the lender of the final SBA loan review decision, whichever is earlier.\u00a0<\/span><\/p>\n

    It is critical to timely file the appeal petition because the PPP rules require the dismissal of any appeal that is untimely<\/b>.<\/span><\/p><\/blockquote>\n

    Can my accountant, that helped me with my loan forgiveness application, submit my appeal?<\/span><\/h2>\n

    Only the borrower or the borrower\u2019s attorney can submit a PPP loan appeal through the SBA\u2019s PPP loan forgiveness appeal portal. If the borrower is a separate business entity, the following individuals (or the entity\u2019s attorney) may submit appeals:<\/span><\/p>\n