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SBA Extends PPP Loan Repayment Period

August 24, 2021

Under the previous rule, borrowers were required to begin making payments as soon as the SBA notified the lender that forgiveness was not allowed or in the case of partial forgiveness, when the SBA remitted partial payment to the lender. Under the new rule, a borrower’s timely appeal of a final SBA loan review decision will extend the deferment period until the SBA issues a final decision on appeal.

This is welcomed news for PPP loan borrowers who receive an adverse decision from the SBA and want to appeal the loan review decision. The appeals process can be complicated. But, can also be worthwhile.

An appeal petition must be filed by the borrower within 30 calendar days after receiving the SBA loan review decision.

The SBA reports that as of August 15, 2021, loan forgiveness applications have been submitted on 48% of the PPP loans and that 46% of the PPP loans have been fully or partially forgiven.

About the authors:

Close Up of James R. Cambridge of Kerr RussellJames Cambridge has more than 30 years of experience in the areas of business law, finance, and real estate. He serves as counsel for a number of businesses and handles a variety of matters such as business formations, contracts, employment, lending relationships, restructurings, real estate, buying and selling businesses and resolving troubled business situations. He is experienced in advising closely-held businesses, as well as in advising US and foreign-based companies in establishing operations in both the US and abroad.


Headshot of Cody Attisha of Kerr RusellCody Attisha focuses on taxation law, corporate law, mergers and acquisitions, finance, and estate and trust planning. He also helps clients with entity formation, including evaluating, choosing, and implementing the right partnership, corporate, or non-profit structure.



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