PPP Loan Forgiveness Appeal Process

What happens if you file your Form 3508 forgiveness application and you don’t get the result that you want? What happens if you put in for full forgiveness, only receive partial, and think that you are entitled to full? This is a brand new process that hasn’t been completely formalized yet. As such, there will be changes forthcoming.

The Small Business Administration (SBA) Office of Hearings and Appeals (OHA) allows borrowers to appeal certain SBA loan decisions. You cannot submit an appeal to OHA if you received the wrong decision from your lender. You can only appeal if the SBA has issued the review decision.

That doesn’t seem right, but there’s no process inside the law requiring an appeals process at the lender level.

There are two ways that you can get the SBA to provide a loan review.

1 – You can request one. Once your lender renders their decision, you can request that it be reviewed. That doesn’t mean that automatically the SBA will review it. They may just decide not to decide.

2 – Or the SBA decides to review. All loans over $2M are automatically reviewed. They don’t need a reason to choose your loan for review. They may just decide to do so.

If the SBA reviews your loan and denies forgiveness, you may then appeal the decision to OHA.

You can file an appeal if the SBA determines that you:

1 – Weren’t eligible for a PPP Loan to begin with

2 – Weren’t eligible for the amount of the loan that you received

3 – If the loan proceeds were used for unauthorized purposes

4 – If you aren’t eligible for the loan forgiveness that your lender determined or

5 – If the SBA determined that the amount of forgiveness authorized by your lender was incorrect

The lenders and the SBA have begun tightening down on the forgiveness process. Every day there are new headlines about this pastor using a loan to buy a Lamborghini or another rap star indicted because their proceeds were used to finance a weed farm.

And we’re going to hear a lot more.

I’ll continue to write about the appeals process because it will certainly become more commonplace in the months to come.

Let me leave you with this.

I received a couple of interesting calls from clients who received large checks from the IRS not knowing what they were for. When the checks come, they don’t come with an explanation as to what they are actually for.

In most of the instances, these are the IRS payments for the Employee Retention Credit.

That’s right, my Brothers and Sisters. This isn’t a fantasy of some great fictional story that I dreamed up. It’s actually working.

The checks that have come out recently are the credits that were refunded from the 1st Quarter payroll tax returns that we were able to electronically file. If you are one of our payroll clients who signed up for the Employee Retention Credit Consulting and Preparation program, this was automatically done for you as part of our service.

I’m yet to hear about any difficulties on this. I have not heard of anyone who didn’t receive their payment.

If you are not one of our payroll clients, then your payroll tax return must be amended. Those amendments cannot be electronically filed. As such, they take three or four months to process the payments.

But don’t kid yourselves my friends. Be patient. They work just as well. If you haven’t signed up for our ERC Program, do so today by clicking on the button below.

We’re all going to get through this. Let’s get through it together.

Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,

Sincerely yours,

Chris Amundson
Accounting Solutions Ltd.


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