Expert Advice for New Phases for Lenders and Borrowers on PPP and MSLP Loans: PPP Loan Forgiveness and SBA PPP-MSLP Loan Reviews


COVID emergency loan programs and federal government credit facilities have entered critical new phases. As highlighted by recent media attention to the SBA’s new PPP Forgiveness Questionnaire for borrowers, borrowers and lenders face new and difficult issues regarding these lending programs, especially PPP loans and the program. loan from the main street.

PPP Loan Program

For most borrowers, the time limit for spending the proceeds of PPP loans has expired. As a result, these borrowers start submitting loan forgiveness requests. New obstacles and challenges have been created:

  • For borrowers, remission issues include: (1) completing remission requests efficiently and in accordance with SBA requirements; (2) understand requirements and forms, including submitting the new SBA Forgiveness Questionnaire which requires detailed information and documentation on the borrower’s finances, liquidity and recent transactions; (3) respond to lenders and the SBA regarding rebate requests; and (4) manage appeals from denials of pardon requests.
  • Lenders must assess forgiveness requests in accordance with SBA requirements and submit requests correctly. Lenders must ensure that they do not take any action that is inconsistent with the PPP program and the guidelines of the CARES Act.

Main Street Loans

Since the federal government has a stake in every Main Street loan, these loans require special attention from lenders and borrowers. Both must ensure that the loan program conditions and documents are met. With the Federal Reserve’s announcement that the last day to submit claims on its Special Purpose Vehicle portal will be December 14, lenders must now focus on meeting their service obligations and others, such as provided for in their agreements with the Federal Reserve Special Purpose Vehicle (the entity that purchases Main Street loan stakes for the federal government).

PPP and Main Street loans require that lenders and borrowers treat these issues with care. If a borrower or lender finds itself in a potentially conflictual situation with the government, it is imperative that that party has a competent and experienced lawyer representing them to protect their interests.

  • Our trade finance group has organized its attorneys to create in-depth expertise in all aspects and requirements of PPP and MSLP programs. Buchalter’s Commercial Finance group is made up of lawyers with extensive transactional and regulatory expertise in borrowers and lenders. Our commercial finance lawyers are ideally placed to advise clients on PPP and MSLP programs and help structure and document all credit facilities offered under the MSLP program.
  • As a leading company in the field of trade finance, Buchalter has processed a large number of PPP and MSLP loans for lenders and borrowers, and has advised numerous clients on the matters discussed above.


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