Payment Processing


Interest Calculation

Interest calculation to be paid on net forgiveness amount:
• 1% - defaults to simple interest unless lender indicates compounded interest was used.
• Please note, the Forgiveness platform has been updated to honor the Bank Method as a default method for interest calculation: All interest calculated under this platform shall be computed based on 365(Actual)/360-day count by default
• The platform also supports interest calculation based on 365(Actual)/365-day count, 30/360-day count as well. Lender AO would have to choose this option in Institution Settings on Forgiveness SBA portal

Formula for Interest Calculation (Actual/360)

(SBA calculated Forgiveness amount – EIDL advance from SBA) * 1/100 * (Payment Date – Loan Disbursement Date)/360

Example (Actual/360)

SBA Number Forgiveness Amount (determined by SBA) EIDL advance (from SBA system of records) Loan Disbursement Date Payment Date Number of Days for interest calculation (Payment Date – Disbursement Date) Interest Calculated @ 1% Final forgive amount with interest
X 300,000 0 05/08/2020 09/30/2020 145 1208.33 301,208.33
Y 300,000 9000 05/08/2020 09/30/2020 145 1172.08 292,172.08
Z 5000 10000 05/08/2020 09/30/2020 145 0 0

Formula for Interest Calculation (Actual/365)

(SBA calculated Forgiveness amount – EIDL advance from SBA) * 1/100 * (Payment Date – Loan Disbursement Date)/365

Example (Actual/365)

SBA Number Forgiveness Amount (determined by SBA) EIDL advance (from SBA system of records) Loan Disbursement Date Payment Date Number of Days for interest calculation (Payment Date – Disbursement Date) Interest Calculated @ 1% Final forgive amount with interest
X 300,000 0 05/08/2020 09/30/2020 145 1191.78 301,191.78
Y 300,000 9000 05/08/2020 09/30/2020 145 1156.03 292,156.03
Z 5000 10000 05/08/2020 09/30/2020 145 0 0

Formula for Interest Calculation (30/360)

(SBA calculated Forgiveness amount – EIDL advance from SBA) * 1/100 * (Number of days for interest calculation)/360

Example (30/360)

SBA Number Forgiveness Amount (determined by SBA) EIDL advance (from SBA system of records) Loan Disbursement Date Payment Date Number of Days for interest calculation Interest Calculated @ 1% Final forgive amount with interest
X 300,000 0 05/08/2020 09/30/2020 142 1183.33 301,183.33
Y 300,000 9000 05/08/2020 09/30/2020 142 1147.83 292,147.83
Z 5000 10000 05/08/2020 09/30/2020 142 0 0

Overpayment

SBA has determined that it is not cost effective to require Lenders to return forgiveness overpayments of $10 or less and, accordingly, Lenders need not return the funds to SBA if the amount of the overpayment with respect to a particular PPP loan is $10 or less. In such cases, instead of returning the overpayment to SBA, the Lender must credit any remaining balance on the PPP loan for which the overpayment was made by the amount of the overpayment. If there is no remaining balance, the Lender may retain the overpayment.

Payment Dashboard to API Mapping

The Payment Dashboard will display details only when SBA takes the decision on the forgiveness

Payment Dashboard API Mapping

Please note: EIDL advance reduction amount will always be from SBA system of records on payment dashboard.

CCD+ ACH 7 Record Addendum Layout for PPP Forgiveness Payment

Field Name Value Length Character Position
Segment Identifier REF 3 01-03
Separator * 1 04-04
Reference Number Qualifier 33 2 05-06
Separator * 1 07-07
Borrower Name (Up to 25 Positions Left Justified) 25 08-32
Terminator \ 1 33-33
Segment Identifier RMR 3 34-36
Separator * 1 37-37
Reference Number Qualifier LD 2 38-39
Separator * 1 40-40
SBA Loan Number ########## 10 41-50
Separator ** 2 51-52
PPP Forgiveness Amount (Right justified, zero fill to the left) First 8 positions dollar amount.last 2 positions cents 11 53-63
Terminator \ 1 64-64
Segment Identifier REF 3 65-67
Separator * 1 68-68
Purpose Code ZZ 2 69-70
Separator * 1 71-71
Purpose Description PPPFGIVE 8 72-79
Terminator \ 1 80-80
ACH Payment