1. PPP Loan Forgiveness Help Center
  2. Forgiveness Process Questions

Can I dispute or appeal the forgiveness amount granted by the SBA or a decision by the SBA not to grant forgiveness?

Please review the three options below to see if you are eligible to dispute or appeal your forgiveness decision:

1. If you requested partial forgiveness and received partial forgiveness, there is currently no process for you to appeal your partial forgiveness decision with the SBA. As a reminder, the SBA guidelines require you to use a minimum of 60% of the funds you received towards payroll and no more than 40% on business related non-payroll expenses (rent, utilities, mortgage interest etc.). So in order to request and receive full forgiveness for your loan, you would have needed to claim and show proof that you used 100% of the funds you received – at least 60% on payroll costs and no more than 40% on non-payroll costs.

We understand you may have made an error in your loan forgiveness application that could've led you to request less forgiveness than you intended and we know this is disappointing to hear. One thing we try to stress for borrowers is the importance of reviewing your forgiveness request and calculations  before submitting your application. 

Unfortunately, the SBA guidance states that it is each borrower’s responsibility to determine which of their business’ expenses are eligible for forgiveness, and to include all of those eligible expenses that you would like forgiven in your forgiveness request. Scratch’s role is to review your forgiveness application for completion (verifying you have filled in each amount and substantiated those amounts with suitable documents), but we do not know your business and are not tax/business advisors, so we cannot determine if you have missed certain expenses or review the calculations that determine if you are requesting full or partial forgiveness. 

If you are disappointed to have received partial forgiveness after requesting partial forgiveness, our best recommendation for you at this time is to make payments on your remaining balance if possible so that your account will stay current, and keep an eye on the SBA’s PPP loan forgiveness page in case they open up a process for borrowers to rescind and resubmit their applications if they believe there has been an error.


2. If you were denied forgiveness in full (i.e., received $0 in forgiveness), you have the right to request that the SBA review our decision if you notify us within 30 days of your forgiveness decision notice and request this review. Full details on that process are in the SBA guidance on pages 53-54 here. Note that this appeal process is only applicable for borrowers who received a full denial of their forgiveness request – $0 in forgiveness – but is not an appeal path for borrowers who requested and received partial forgiveness.


3. If the SBA undertakes an official review of your loan because the SBA determined you were ineligible for your loan, ineligible for loan forgiveness, or disagreed with the forgiveness request we passed to the SBA from you, you are eligible to appeal to the SBA’s Office of Hearings and Appeals (OHA). Please find details about that process here.