Supporting Statement
U.S. Small Business Administration
Paperwork Reduction Act Submission
Paycheck Protection Loan Program
OMB Control Number 3245-0417
A. Justification
Explain the circumstances that make the collection of information necessary.
Section 1102 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Pub. L. 116-136 (March 27, 2020), authorized the Small Business Administration to guarantee loans made by banks or other financial institutions under the “Paycheck Protection Program” (PPP), as codified in section 7(a)(36) of the Small Business Act. On December 27, 2020, SBA received authorization to guarantee loans under an additional program, the PPP Second Draw Program, which is codified at section 7(a)(37) of the Small Business Act. (Pub. L. 116-260, Div. N, title III, sec. 311). Under this program, loans could be made to borrowers that previously received a PPP loan under section 7(a)(36) of the Small Business Act (“First Draw PPP Loans”) and had used or would use the full amount of their initial PPP loan for authorized purposes on or before the expected date of disbursement of the Second Draw PPP Loan.
Although SBA's program authority has expired, this information collection is still needed. SBA recently published an Interim Final Rule on Paycheck Protection Program—Extension of Lender Records Retention Requirements (89 FR 68090, August 23, 2024), extending the PPP loan records retention requirements for PPP lenders to ten years from the date of disposition of each individual PPP loan. Because the PPP lender recordkeeping requirements have been extended, this information collection needs to be extended accordingly. Therefore, SBA is seeking OMB's approval to use this information collection beyond November 30, 2024. There are no proposed changes to any of the forms.
How, by whom, and for what purpose will the information be used.
This information collection consists of:
(1) SBA Form 2483-SD (Paycheck Protection Program Second Draw Application Form), which collects information from applicants regarding continued eligibility and the justification for the amount of the second draw request. Information collected is used by lenders to determine the applicants’ eligibility to receive a Second Draw Loan and the eligibility of the use of proceeds.
(2) SBA Form 2483-SD-C (PPP Second Draw Application Form for Schedule C Filers Using Gross Income), which collects information from applicants regarding continued eligibility, the justification for the amount of the second draw request, and the applicant’s gross income.
(3) SBA Form 2484-SD (Paycheck Protection Program Second Draw Lender’s Application for 7(a) Loan Guaranty), which collects information from lenders concerning the eligibility of the applicant, the applicant’s gross income (if applicable), and the loan terms and conditions. SBA uses the information provided by lenders to ensure compliance with Loan Program Requirements (as defined in 13 CFR 120.10), as modified specifically for the Second Draw Program, and any applicable Paycheck Protection Program interim final rules, Frequently Asked Questions, SBA notices, and other applicable guidance.
Applicants and Lenders will also submit information approved under the collection of information approved for the Paycheck Protection Program (OMB Control Number 3245-0407), including information related to loan reviews and requests for loan forgiveness.
3. Use of automated, electronic, mechanical, or other technological collection techniques.
SBA Forms 2483-SD, 2483-SD-C and 2484-SD are available on the SBA website as PDFs at https://www.sba.gov/managing-business/forms/lending-forms. Lenders were also able to assist applicants by generating the forms through third-party software platforms.
SBA Form 2483-SD: Applicants completed the form (or the lender’s equivalent form) and submitted it to the lender with any supporting documentation.
SBA Form 2483-SD-C: Applicants completed the form (or the lender’s equivalent form) and submitted it to the lender with any supporting documentation.
SBA Form 2484-SD: Lenders completed the form and submitted it to SBA electronically via the Paycheck Protection Platform (forgiveness.sba.gov).
Lenders must retain the original forms and all supporting documentation in its loan files.
4. Avoidance of duplication.
There are no known sources of information that could be used in lieu of the requested information. The data requested is unique to each lender, applicant or borrower, including principals, and to the circumstances of each particular PPP Second Draw loan.
Impact on small businesses or other small entities.
This information collection impacts a substantial number of small businesses and other small entities. However, the information collected was designed to lessen the burden by requesting the minimum information necessary for SBA and lenders to make prudent decisions. The fact that the information was submitted electronically and not in paper form, also helped to mitigate any burden on borrowers and lenders.
Consequences if information is not collected.
Failure to collect and retain the information requested could result in improper payments if loans were issued to applicants that were not eligible or for purposes that were not authorized, or forgiveness payments were remitted to lenders for ineligible borrowers or ineligible amounts. Failure to collect and retain the information could also impact SBA’s ability to ensure its lending partners are complying with the applicable Loan Program Requirements.
Existence of special circumstances.
None of the circumstances are applicable.
Solicitation of public comment.
SBA published the 60-day public comment notice in the Federal Register on September 20, 2024, at 89 FR 77218. No comments were received by the end of the comment period on November 19, 2024.
Payment or gift to respondents.
No gifts or payments are provided to any respondents.
Assurances of confidentiality.
The information collected is protected to the extent permitted by law. SBA incorporated various statements required by law and executive orders to advise respondents of, among other things, the protections against disclosure of sensitive and confidential information under the “Freedom of Information Act” (5 U.S.C. § 552), “Right to Financial Privacy Act of 1978” (12 U.S.C. § 3401), and the Privacy Act (5 U.S.C. § 552a), where applicable.
Questions of a sensitive nature.
Information that is retrieved by a personal identifier is maintained in SBA’s Privacy Act System of Records governing the disclosure of such information, specifically SBA 21--Loan System. See
Federal Register Notice at 74 FR 14890 (April 1, 2009) as amended by notices published at 77 FR 15835 (03/16/2012) and 77 FR 61467 (10/09/2012), for details regarding routine uses and other terms governing the use of the information.
Estimate of the hourly burden and cost burden for the collection of information.
The estimated annual burdens based on the information below is as follows:
Total number of Respondents:
Total number of Responses:
Total Hours:
Total Hour Cost for Respondents:
Total Cost for Federal Government:
SBA Form 2483-SD
The total estimated number of respondents for this form is 0 because no further applications can be submitted. The estimated annual hour burden associated with lender records retention is 14,962. The estimated annual cost burden is $746,007.
Estimated cost used is the salary for a GS-11, Step 1 Federal employee’s annual salary of $80,217 or $38.44 hourly rate based on the 2024 General Schedule for Sacramento California (Base), plus estimated fringe benefits of 29.7 of salary, for a total hourly rate of $49.86. The GS-11 pay grade is utilized in preparing this estimate as it is equivalent to the position normally held by a white-collar employee in a mid-level position.
The time required for document retention is nominal and estimated at an average of one-half (1/2) minute per form.
SBA Form 2483-SD-C
The total estimated number of respondents for this form is 0 because no further applications can be submitted. The estimated annual hour burden associated with lender records retention is 9,316. The estimated annual cost burden is $464,513.
Estimated cost used is the salary for a GS-11, Step 1 Federal employee’s annual salary of $80,217 or $38.44 hourly rate based on the 2024 General Schedule for Sacramento California (Base), plus estimated fringe benefits of 29.7 of salary, for a total hourly rate of $49.86. The GS-11 pay grade is utilized in preparing this estimate as it is equivalent to the position normally held by a white-collar employee in a mid-level position.
The time required for document retention is nominal and estimated at an average of one-half (1/2) minute per form.
SBA Form 2484-SD
The total estimated number of respondents for this form is 0 because no further applications can be submitted. The estimated annual hour burden associated with lender records retention is 24,278. The estimated annual cost burden is $1,210,520.
Estimated cost used is the salary for a GS-11, Step 1 Federal employee’s annual salary of $80,217 or $38.44 hourly rate based on the 2024 General Schedule for Sacramento California (Base), plus estimated fringe benefits of 29.7 of salary, for a total hourly rate of $49.86. The GS-11 pay grade is utilized in preparing this estimate as it is equivalent to the position normally held by a white-collar employee in a mid-level position.
Retention time is estimated at an average of one-half (1/2) minute per form. The time required for document retention is nominal.
Estimate of total annual cost excluding cost included above in number 12.
There are no start-up, capital or other costs to respondents as a result of this information collection. Lenders must maintain loan documentation in their files but would do so as part of their ordinary and expected course of business practice.
Estimated annualized cost to the federal government
SBA Form 2483-SD, 2483-SD-C and SBA Form 2484-SD
The estimated annualized cost to the federal government is 0 because the lenders must retain the records.
15. Explanation of program changes in items 13 or 14 on OMB Form 83-I.
There is a decrease in the burden hours because SBA’s program authority has expired.
16. Collection of information whose results will be published.
Business loan data is routinely published on SBA website and may be included in periodic reports to the Congress and/or OMB.
17. Expiration date for collection of this data.
This is not applicable; expiration date will be displayed.
18. Exceptions to the certification on Block 19 on OMB Form 83-I.
There are no exceptions.
19. Collections of Information Employing Statistical Methods
This is not applicable.
| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
| Author | Ledford, Edward |
| File Modified | 0000-00-00 |
| File Created | 2024-11-27 |