Updating Banking Info for Grant Disbursements in SAM

To update banking information for grant disbursements in SAM.gov, users must log into the SAM portal, navigate to Entity Management, select “Update Entity,” and modify financial details with accurate routing and account numbers. Updates require using FDIC-insured institution information that matches the registered entity name exactly. Notarized documentation is necessary for name mismatches. Organizations should notify their granting agency within 30 days of making changes. Proper management prevents payment delays and funding interruptions.

Essential SAM Banking Information Guidelines for Federal Grantees

When applying for federal grants, organizations must maintain current and accurate banking information in the System for Award Management (SAM.gov).

Banking compliance requires providing account and routing numbers from FDIC-insured institutions and completing the mandatory Electronic Funds Transfer (EFT) enrollment.

Organizations should verify that the banking details match the registered entity name, as mismatches require notarized documentation.

Federal grants disbursement relies on properly validated financial information, which must be renewed every 12 months.

Common rejection reasons include expired SAM registrations and non-FDIC institution accounts. Maintaining an active SAM status is essential to avoid interruptions in funding eligibility and access to potential grants.

Best practices include quarterly banking information reviews, monitoring SAM.gov status alerts for discrepancies, and ensuring proper synchronization with payment systems like ASAP and JustGrants. JustGrants receives automatic updates from SAM.gov to reduce manual information entry errors when processing awards.

Immediate updates are required when account ownership changes occur.

The EBiz Point of Contact (POC) should oversee banking information updates as this designated administrator role is responsible for maintaining the organization’s SAM.gov profile integrity.

Step-by-Step Process for Updating Financial Information Post-Award

Steering the post-award financial update process requires systematic attention to multiple federal systems and specific timing requirements. Recipients must follow these steps to maintain financial compliance:

1. Log into the System for Award Management (SAM) portal with authorized credentials.
2. Navigate to the Entity Management section.
3. Select “Update Entity” and proceed to the financial information section.
4. Enter updated banking details, including routing and account numbers.
5. Submit changes and retain confirmation documentation.

For post-award amendments involving financial information, recipients must also:

1. Notify the granting agency within 30 days of changes.
2. Update the Payment Management System separately.
3. Reference these changes in the next scheduled Federal Financial Report (SF-425).

Maintaining alignment between SAM records and actual banking information prevents payment delays and funding interruptions. Federal agencies validate the unique entity identifier against financial data during payment processing. Ensuring all essential documents are properly prepared before starting the update process can help avoid common pitfalls that cause registration delays.

Common Banking Change Pitfalls and Prevention Strategies

Why do seemingly simple banking information updates often become roadblocks in the grant management process? The complexity lies in multiple validation requirements that must align perfectly for successful updates.

A primary issue involves ACH phone number validation. Many registrants mistakenly enter their business phone rather than the bank’s ACH department contact, delaying payment processing when issues arise. Following the collapse of Silicon Valley Bank, many organizations faced additional complications when updating banking information in SAM.gov under urgent conditions. Maintaining profile accuracy throughout this process is critical as it directly impacts the reviewers’ ability to evaluate your grant eligibility.

Similarly, TIN discrepancies between SAM records and IRS databases frequently cause rejections, particularly for sole proprietors who must use specific naming conventions.

To prevent these common pitfalls:

1. Verify your bank’s ACH department direct line before submission
2. Confirm entity names match IRS records exactly
3. Respond to CAGE code verification emails within 72 hours
4. Complete entity and payment information updates separately to avoid processing conflicts
5. Keep detailed records of all banking information changes you make for easy reference during future updates or troubleshooting

Frequently Asked Questions

Can Foreign Bank Accounts Receive Federal Grant Disbursements?

Foreign bank accounts can receive federal grant disbursements, though foreign account eligibility varies by grant program.

International grant disbursement depends on specific authorizing legislation, agency policies, and program requirements. The grant’s purpose and alignment with U.S. program objectives greatly influence approval.

Foreign entities must register with SAM and obtain necessary identification codes. Recipients should consider potential international tax implications when receiving funds through foreign accounts, as compliance with U.S. financial regulations may apply depending on circumstances.

What Happens if My Bank Merges During My Grant Period?

When a bank merger occurs during a grant period, recipients must update their banking information in the System for Award Management (SAM). This guarantees grant funding continuity without disruption to scheduled disbursements.

Recipients should:

1. Obtain new routing and account information from the merged bank
2. Update SAM records promptly
3. Notify the granting agency of the changes
4. Maintain documentation of all communications regarding banking changes

How Long Does SAM Bank Verification Typically Take?

SAM bank verification typically takes 3-5 business days for standard processing.

When banking account changes occur, verification may extend to 7-12 business days if manual review is required.

The process moves faster when submitted information matches existing records in automated systems.

Factors that may delay verification include incomplete documentation, technical issues with the system, or the need for additional external validation from financial institutions.

Are Temporary Holds Placed on Funds During Banking Information Updates?

When organizations update banking information in SAM, temporary fund holds are not automatically imposed.

However, delays in disbursement may occur while verification processes complete. The NSF continues to track awards through ACM$, but payments cannot process until banking info updates are fully verified in the system.

Organizations should plan for potential processing delays of 3-5 business days when making banking information changes.

Can I Designate Multiple Accounts for Different Grant-Related Expenses?

SAM.gov typically allows only one primary bank account designation per entity for federal grant disbursements.

Multiple account designations for different grant expense tracking must be managed internally by the recipient organization. Recipients commonly use accounting software or separate cost centers to track different grant expenses while funds flow into a single account.

For specialized needs, organizations should consult with their grants officer to determine if alternative arrangements are possible within compliance requirements.