SBA To Open New PPP Portal for Direct Loan Forgiveness
Many Paycheck Protection Program (PPP) borrowers will soon be able to bypass their lenders and apply for loan forgiveness directly through the Small Business Administration (SBA).
Beginning on August 4, borrowers with loans of $150,000 or less can apply for forgiveness through the SBA’s new direct forgiveness portal (SBA PPP Direct Forgiveness Portal).
Banks must opt into direct forgiveness, however, in order for its borrowers to apply directly through the SBA. Lenders can opt into the program via https://directforgiveness.sba.gov.
The SBA’s portal is intended to accelerate the economic relief program, which was born out of the CARES Act, enacted in March of 2020. Since that time, the program has distributed nearly $800 billion in loans, nearly half of which has not yet been forgiven.
The move comes as many early PPP borrowers who opted for 24-week covered periods approach due dates for loan repayments. Under the program’s guidelines, borrowers must apply for forgiveness within 10 months of the end of their covered period to avoid principal and interest payments.
The SBA administrator said, “The vast majority of businesses waiting for forgiveness have loans under $150,000. These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process. We need to deliver forgiveness more efficiently so they can get back to enlivening our Main Streets, sustaining our neighborhoods and fueling our nations’ economy.”
As always, MFA’s PPP Advisory Team is here to assist borrowers of any size who need assistance navigating the loan forgiveness process. Please don’t hesitate to reach out with questions or for guidance.
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