The questions answered below cover some of the topics asked about the Boss Insights system specifically. The best FAQ for the PPP more generally is from the SBA at https://www.sba.gov/sites/default/files/2021-01/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

Questions about SBA holds or compliance checks? The SBA has released a guide on resolving these at: https://www.sba.gov/document/procedural-notice-5000-20092-revised-sba-paycheck-protection-platform-procedures-addressing-hold-codes-first-draw-ppp-loans

Application Questions

Applications

Borrower wants to apply for a second loan or second forgiveness. How do I add another loan/How do I add another forgiveness?

Our portal accepts one (1) loan application and one (1) forgiveness application for each account/URL. For the borrower to apply for another loan or another forgiveness, they will need a new account/URL. Here are three steps you can follow:

Step 1: Send a new invitation. You can invite them using the same email address they used for the first application. For reference, here are guidelines on Adding Borrowers.

Step 2: When they register for their second loan application, they will need to go through the same process of applying - similar to how they applied on their first loan application. They will need a new subdomain for their second application. If the borrower asks why their old subdomain does not work, please let them know that they can create a new subdomain using the link you sent to their email when you invited them in the previous step. They are free to create any subdomain, but we recommend using their first PPP subdomain plus “second”.

For example:

Maple Leaf Bakery applied for their First PPP Forgiveness. The URL they used for both their First PPP Loan and First PPP Forgiveness is mapleleaf.myintranetapps.com.
When they register for a new URL/account for their Second PPP Draw and Second PPP Forgiveness, they can use mapleleafsecond.myintranetapps.com.

Step 3: Once the borrower has finished registering for their new loan application, you can visit their profile on “Portfolio” and click on the new URL they created.

You have successfully invited the borrower for their second PPP loan application. Just remember: The URL for the first PPP loan application and the second PPP loan application will be different from each other. You can also check out Can't sign in - How to troubleshoot your borrower's sign-in problems

Schedule-C

An overview of the schedule-c selection process can be seen in our Guidelines for the new Borrower Application Forms for Schedule C filers

How can borrowers access the new Schedule C form?

This can now be chosen in the first step “Loan Selection”

Ownership

Does ownership need to total to 100%?

No, only owners of 20% or more need to be listed. Total ownership may not exceed 100% and may be less than 100%.

If the business is a Sole Proprietor, Self-Employed Individual or Independent Contractor the SBA expects one owner with 100% ownership.

For non-profits at least one principal (owner) must be specified with 20% ownership.

If there is a situation where there is no owner above 20% ownership, you would map one of your principals into the applicant information at 20%.

No owners with 1 percent

The SBA requires that the Owners percent is at least 1%. In some scenarios where there is no owner with 1%, you will still need to submit a principal with 1%. There is no current workaround. The SBA has finalized the ownership/principal requirement to enforce an aggregate 20% submission level for all principals combined. The system will still honor the current value of 1% (for each individual principal) – but the aggregate of those entered – must be 20%. Said differently – a single 1% principal will not be allowed – you must submit an achieved total of 20%.

The SBA expects 100% ownership, if using self-employed individual, independent contractor, or a sole proprietor Borrower types. This also applies to non-profits and other entities that have no real owners. A director or other manager should be listed with at least 20% for submission.

What is meant by “Principal” in a PPP application?

a) For a self-employed individual, independent contractor, or a sole proprietor, the self-employed individual, independent contractor, or sole proprietor.

b) For a partnership, all general partners and all limited partners owning 20% or more of the equity of the Borrower, or any partner that is involved in the management of the Borrower’s business.

c) For a corporation, all owners of 20% or more of the Borrower, and each officer and director.

d) For a limited liability company, all members owning 20% or more of the Borrower, and each officer and director.

e) Any individual hired by the Borrower to manage the day-to-day operations of the Borrower (“key employee”).

f) Any trustor (if the Borrower is owned by a trust).

g) For a nonprofit organization, the officers and directors of the Borrower.

What address validation does the SBA perform?

Upon submission, the SBA platform will automatically validate and standardize addresses before booking into ETRAN. If they can’t find a Zip + 4, their platform will leverage the current SBA address validation rules which are more flexible (City/Zip Combinations) – often used to account for US territories.

If the address is not valid after this final address check by the SBA, they will return a failed validation message which will require resubmission by the Lender.

Year or date of establishment?

While the paper 2483 form asks for year of establishment the SBA actually requires us to submit the date of establishment to confirm the business was in existence before Feb 15th 2020.

Employee count to loan calculation.

The SBA enforces that the loan cannot exceed more than 35K per employee during the calculation period. This validation routine is an effort to help ensure appropriate loan amounts are enforced within the system, yet still allow for appropriate variances.
Validation routine:

  • First draw Loan - Loan amount should be equal to (2.5 times average monthly payroll + EIDL refinance (if applicable))

  • Second draw loan - Loan amount should be equal to (2.5 times average monthly payroll) for all businesses except for Restaurants. For Restaurants with NAICS code starting with 72 (3.5 times average monthly payroll)

Above calculated loan amount should be <= (35000 * No of employees) + (EIDL refinance (if applicable for first draw only))


Application Processing

When does Boss Insights get updates on the status of applications?

Boss Insights is generally checking the status of any submitted loans every hour. Etran typically updates the SBA’s origination platform once per day in the “early morning hours” although this may change at any time. The SBA origination platform generally updates us within 30 minutes, what this means in practice is that when there are errors we get feedback quickly while when an application is approved we get the confirmation within 24hrs.

The portfolio shows the status of the loan, what do the statuses mean?

The portfolio will show the following statuses:

Status

Meaning

Action Required?

NOT STARTED

The borrower has created a secure login to the portal but has not yet begun to go through the application workflow

Generally None. If the borrower stays in this status for a long time it would be worthwhile to contact them proactively to see if they need help.

IN PROGRESS

The borrower has signed in and begun to answer questions and/or upload data

Generally None. If the borrower stays in this status for a long time it would be worthwhile to contact them proactively to see if they need help.

AWAITING LENDER REVIEW

The borrower has completed their application and has submitted it for you to review

Yes, select the borrower from the INSIGHTS menu and select the “Lender Review” workflow step. Guidance and options will be presented to submit the application to the SBA or return the application to the borrower for further editing.

READY TO SUBMIT

This status is briefly shown after the lender has reviewed and approved the application and it is marked as ready to submit to the SBA. Typically this status changes within an hour.

None

AWAITING LENDER REVIEW ERROR

When the application is immediately rejected from the SBA upon submission. No application record will be created in ETRAN and lender attention is required.

The lender must review the error message displayed on the “Lender Review” step to determine which piece of information requires correction. At this point the application may need to be returned to the borrower.

SBA: PENDING VALIDATION

The application has been successfully received by the SBA and needs to go through initial checks. This process can take between 1-24hrs.

None

SBA: FURTHER RESEARCH REQUIRED

Second Draw submissions will be moved to a research status if the related First draw loan has a hold on it.

The SBA Platform will provide the Lender an opportunity to submit documentation through the SBA Platform to support the resolution of an outstanding First Draw issue(s). Once resolved by SBA, the Second Draw Loan guarantee applications will be automatically submitted into the next stage of processing and will not require re-entry by the Lender.

SBA: FAILED VALIDATION

The application failed to pass initial checks

The lender must review the error message displayed on the “Lender Review” step to determine which piece of information requires correction. The application will need to be cancelled then re-submitted.

SBA: UNDER REVIEW

Under review within the SBA ETRAN system

None

SBA: NOT APPROVED BY SBA

The application has been declined.

The lender must review the error message displayed on the “Lender Review” step to understand why the application was not approved. The application will need to be cancelled then re-submitted.

APPROVED BY SBA

The application has passed all SBA checks and is issued with a Loan ID

From the lender review either:

Close the loan using an eSign process and disburse funds to borrower - the status will change to CLOSING DOCS IN PROGRESS

OR:

Close the loan manually and disburse funds to borrower - the status will change to CLOSED EXTERNALLY

CLOSED EXTERNALLY

The approved loan is now closed and completed

No further action required

CLOSING DOCS IN PROGRESS

A notification email has been sent to the borrower to begin the eSign process

None

AWAITING SIGNATURES

One or more signatories has not yet signed the document. Each signatory receives a personalized email with link to sign the document. The status of each signatory can be seen from the lender review page

None

CLOSING DOCS SIGNED

The borrower and all signatories have signed the document.

The lender reviews the final document and then

CLOSED WITH ESIGN

The approved loan is now closed and completed

No further action required