How to Submit a PPP 1502 Report – Get Lender Processing Fees

Thomas Curley
May 13, 2020
Read Time: min

This article was updated May 21 to reflect recent information provided by the SBA and Colson Services.

Since the April 3 launch of the SBA’s Paycheck Protection Program (PPP), financial institutions have approved over $530 billion in PPP loans to small businesses throughout the United States. Participation in the program has slowed, and many financial institutions are now shifting gears, looking ahead to the forgiveness and administration of these loans that will be necessary to complete the PPP process. While lenders are combing through the new PPP loan forgiveness application and are still seeking clarification on several areas, the SBA has clarified the process for filing the initial SBA Form 1502 report for lenders to receive processing fees. 

What is Form 1502?

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.

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How to sign up with Colson to file Form 1502 for PPP loans

Colson on May 18 said it had opened its "1502 Dashboard Reporting" in preparation for SBA Form 1502 Reporting for PPP loans.  To begin submitting 1502 reports to Colson, financial institutions need log-in credentials to the 1502 Dashboard.  (Colson noted that lenders should not request access to the separate 1502 Connection, which cannot be used for PPP loans.) The 1502 Dashboard is available via a drop-down menu in the upper right hand corner of the homepage.

"Due to the extremely high demand for PPP loans, please allow sufficient time for processing," Colson said. To gain log-in credentials, follow these simple instructions provided by Colson:

Send an email to enrollment@colsonservices.com with the following: 

  1. A subject line reading “1502 Dashboard Access Request for PPP Loans”
  2. The body of the email including:
    • Name of the lender/institution
    • E-Tran Main Location ID (CAFS Location ID under which loans were originated)
    • One SBA PPP loan number assigned to a loan made by the lender (to cross-reference location ID and loans tied to it)
    • Colson Lender ID (if known)
    • Individual main user's name, email address, and phone number. This should be included in the body of the email and not just in the signature block.

The SBA said lenders have a few different options for submitting 1502 reports. The first option is to attach and email the 1502 report spreadsheet directly to 1502@colsonservices.com. Lenders also have the option to upload the 1502 report directly on the 1502 Dashboard site. They can deliver the 1502 spreadsheet via Secure File Transfer Protocol (SFTP), but it requires additional enrollment, so lenders should email SFTPaccess@colsonservices.com for additional instructions. Lenders will also soon be able to key in values directly, according to the SBA notice

Lenders should read the SBA notice carefully to make sure the follow the procedures exactly so they can be paid the processing fees. They will need to check a box on the Colson portal confirming several items, and they should monitor carefully the 1502 Dashboard daily for exceptions that are reported and correct them before 5 p.m. Eastern on the second business day after submitting the report. On the third business day, SBA will initiate the payment process.

With this major PPP administrative task accomplished for most of their loans, lenders will be able to turn more of their focus toward helping borrowers apply to have their PPP loans forgiven.

About the Author

Thomas Curley

Thomas Curley is a Segment Marketing Manager at Abrigo.

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