Lenders who have worked with SBA 7(a) loans in the past should be familiar with SBA Form 1502, as they are due monthly in order to collect payment and loan information about 7(a) loans. Completed forms are then submitted to Colson Services Corporation, the SBA’s Fiscal and Transfer Agent.
In an SBA Procedural Notice May 21, SBA confirmed the existing SBA Form 1502 would be used, although several columns used for 7(a) loans won't be used for PPP reporting. Lenders must also use separate 1502 forms for PPP loans and 7(a) loans.
Lenders must file the first Form 1502 by May 29 for all PPP loans that were approved in E-Tran before May 21. For loans approved after May 21, the initial 1502 must be filed within 10 calendar days after disbursement or cancellation. The SBA said lenders can include multiple PPP loans in a single 1502 report, or they can file a 1502 for each loan. There is no limit on the number of 1502 reports that can be filed.
After submitting the initial SBA Form 1502 report, which is required to trigger payment of processing fees to the lender, PPP loan information is due to the SBA on a monthly basis.
In the initial report, lenders will confirm disbursement or cancellation dates and amounts of all loans. They also need to provide information to direct payment of the requested processing fee, according to the SBA's guidance.
Beginning May 22, lenders can use either the Form 1502 or E-Tran servicing to report any PPP loans that have been cancelled, voluntarily terminated, or repaid after disbursement. SBA said on May 21 that E-Tran servicing was the only method available at that time.
Lenders who aren’t current SBA 7(a) lenders will want to set up their Colson accounts quickly to ensure they are in a position to meet the deadlines set to report PPP loans on Form 1502.