PPP Loans Can Be Sold, Retain Guaranty

Posted: Apr 20 2020

Sales of PPP loans into the secondary market do not require SBA approval, the agency and the Treasury Department said in an update to their frequently asked questions. A PPP loan sold into the secondary market retains the 100% SBA guaranty, the FAQ clarified.

The FAQ also reiterated guidance in the agency’s April 2 interim final rule that a PPP loan may be sold into the secondary market at any time after it is fully disbursed and that it may be sold at a premium or at a discount to par value.

To view the FAQs visit: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf