Many lenders have had questions about the form and content that should be included in a promissory note made under the Paycheck Protection Program (PPP). On April 6, 2020, the Small Business Administration (SBA) released a form template for lenders as use as a promissory note under the program.
As new guidance is released, there may also be questions about whether lenders will be required to go back and modify documentation on PPP loan applications. This question is addressed in the SBA/U.S. Department of the Treasury Paycheck Protection Program Loans Frequently Asked Questions (FAQs) document. We recommend bankers bookmark this document as it will be updated to reflect new questions.
17. Question: I filed or approved a loan application based on the version of the PPP Interim Final Rule published on April 2, 2020. Do I need to take any action based on the updated guidance in these FAQs?
Answer: No. Borrowers and lenders may rely on the laws, rules, and guidance available at the time of the relevant application. However, borrowers whose previously submitted loan applications have not yet been processed may revise their applications based on clarifications reflected in these FAQs.
Additionally, the SBA updated its FAQ document on April 8, 2020, to clarify that a lender may use the provided template OR its own internal promissory note format.
19. Question: Do lenders have to use a promissory note provided by SBA or may they use their own?
Answer: Lenders may use their own promissory note or an SBA form of promissory note.
