SBA PPP Loan Forgiveness Appeals

By: Andrew G. Thomas

As many of you may be aware, the Small Business Administration (“SBA”) has been issuing decisions on Paycheck Protection Program (“PPP”) loans, with many businesses being denied forgiveness of the PPP loans. Due to the nature of these loans, the SBA may deny forgiveness based on a variety of factors ranging from incorrect calculations when applying for the loan or incomplete submittal of documents to prove that the money was not used as intended or that the business simply did not qualify. Depending on the nature of the denial, your business may likely want to appeal the SBA’s decision to deny loan forgiveness.

If your business has PPP loan forgiveness denied, the SBA will send a letter including its decision, the reason for that decision, and an explanation of how to appeal. An appeal petition MUST BE FILED WITHIN 30 DAYS of receipt of the SBA’s decision letter. Once an appeal is filed, the SBA’s appeal process for these decisions is streamlined and straight-forward, although the deadlines are rather short.

The appeals are handled through the Office of Hearing and Appeals, which utilizes an online web portal for filing and receiving documents related to these appeals. Appeals can be filed without an attorney, although it is strongly advised that any such appeal be handled by counsel who is aware of the rules and regulations governing the SBA, PPP Loans and these appeals, to ensure that all of your rights are properly preserved.