Skip to Main Content
Services Talent Knowledge
Site Search


Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

August 14, 2020

COVID-19: SBA Releases Interim Final Rule Outlining Procedure to Appeal PPP Loan Review Decisions

With Paycheck Protection Program (PPP) loan applications in the rearview mirror and the submission of loan forgiveness applications on the horizon, the SBA released long-awaited guidance on the process borrowers can use to appeal certain Small Business Administration (SBA) loan review decisions to the Office of Hearings and Appeals (OHA).

To avail themselves of the appeals process, a borrower must first have an official written decision by the SBA. Only final SBA loan review decisions may be appealed to the OHA. A borrower can’t file an OHA appeal of any decision concerning a PPP loan made by a lender, and filing an appeal doesn’t extend the deferral period of the PPP loan. However, if a borrower disagrees with a decision made by the lender, nothing prevents the borrower from commencing litigation against the lender with respect to the decision. 

A borrower may appeal if, after a complete review of a PPP loan, the SBA finds that a borrower:

  1. Was ineligible for a PPP loan
  2. Was ineligible for the PPP loan amount received or used the PPP loan proceeds for unauthorized uses
  3.  Is ineligible for PPP loan forgiveness in the amount determined by the lender in its full or partial approval decision issued to the SBA
  4. Is in eligible for PPP loan forgiveness in any amount when the lender has issued a full denial decision to the SBA

An appeal petition must include the following:

  1.  The basis for the OHA’s jurisdiction, including evidence that the appeal is timely filed
  2. A copy of the SBA loan review decision that’s being appealed
  3.  A full and specific statement regarding why the SBA loan review decision is alleged to be erroneous, together with all factual information and legal arguments supporting the allegations
  4. The relief being sought
  5.  Supporting documentation
  6. Signed copies of applicable federal tax returns
  7. The name, address, telephone number, email address, and signature of the appellant or its attorney

The PPP loan borrower is the only party that has the right to appeal an SBA loan review decision; individual owners of a borrower may not bring an appeal. A borrower must file its appeal within 30 calendar days of the earlier of either the borrower’s receipt of the final SBA loan review decision or notification by the lender of the final SBA loan review decision. 

During this process, the SBA will produce an administrative record. The administrative record must include relevant documents that the SBA considered in making its final decision or that were before the SBA at the time of the final decision. Typically, the administrative record will be due 20 calendar days after a judge issues an order for its production, and the record will close 45 calendar days from the date of the OHA’s receipt of the appeal. In some circumstances, additional time may be requested and granted. All appeals will be decided solely on a review of the written administrative record, the appeal petition, response(s) filed thereto, any admitted evidence, and an oral hearing, if held. Borrowers concerned about the public release of confidential business and financial information or other personally identifiable information may request a redacted public decision.

At any time while the appeal is pending, the parties may jointly agree to use alternative dispute resolution to assist in resolving the matter.

Borrowers have the burden to prove, by a preponderance of the evidence, that the SBA loan review decision was based on a clear error of fact or law. The OHA may affirm, reverse, or remand an SBA loan review decision. Borrowers should be aware that the prevailing party will not be entitled to recover their attorney’s fees. 

Decisions on appeal will be issues within 45 calendar days of the close of the record. Either party or the judge on their own initiative may request a reconsideration of the decision. A borrower also has a right to request review by the administrator. Only if a borrower requests review by the administrator is the final decision then appealable to federal district court. To avail themselves of the judicial appeals process, a borrower must first exhaust the administrative appeals process. 

This topic is continuing to evolve. This alert is based on current guidance and may be subject to change. 

If you have any questions regarding the content of this alert, please contact Roger Cominsky, Financial Institutions & Lending Practice Area chair, at; Danielle Katz, associate, at; or Samantha Podlas, associate, at

We also have a specific team of Barclay Damon attorneys who are actively working on assessing regulatory, legislative, and other governmental updates related to COVID-19 and who are prepared to assist clients. Please contact Yvonne Hennessey, COVID-19 Response Team leader, at or any member of the COVID-19 Response Team at

Featured Media


Second Department Joins Other Departments: NYS Child Victims Act Applies to Out-of-State Residents Who Resided in NYS at Time of Abuse


Website Accessibility Lawsuits: Several "Tester" Plaintiffs—Gladys Vasquez, Monique Reid, Raymond Forrest, Pedro Martinez, Linda Slade, and Felipe Fernandez—Targeting Businesses in Recent Flurry of Lawsuits


Website Accessibility Lawsuits: Several "Tester" Plaintiffs—Compres, Sanchez, Fontanez, Pajaro, Garcia, and Jaquez—Targeting Businesses in Recent Flurry of Lawsuits


Website Accessibility Lawsuits: Several "Tester" Plaintiffs—Competello, Fernandez, Liz, Riley, and Trippett—Targeting Businesses in Recent Flurry of Lawsuits


CDPAP Providers Get First Look at the Future of CDPAP Without FIs


New York State Fiscal Year 2025 Budget: Implications for Employers Unpacked

We're Growing in DC!

We’re excited to announce Barclay Damon’s combination with Washington DC–based Shapiro, Lifschitz & Schram. SLS’s 10 lawyers, three paralegals, and four administrative staff will join Barclay Damon while maintaining their current office in DC’s central business district. Our clients will benefit from SLS’s corporate, real estate, finance, and construction litigation experience and national energy-industry profile, and their clients from our full range of services.

Read More

This site uses cookies to give you the best experience possible on our site and in some cases direct advertisements to you based upon your use of our site.

By clicking [I agree], you are agreeing to our use of cookies. For information on what cookies we use and how to manage our use of cookies, please visit our Privacy Statement.

I AgreeOpt-Out