SBA Announces Forgiveness Application Portal to Accept Application Beginning August 4th: Over 600 Banks Opt-in
As I reported in my previous blog post, the Small Business Administration (SBA) will launch a streamlined Paycheck Protection Program forgiveness application portal to allow borrowers with PPP loans of $150,000 or less to apply for forgiveness directly through the SBA. On August 4, the portal will begin accepting applications from borrowers that have a PPP loan with a lender that has opted into the forgiveness portal.
“The SBA’s new streamlined application portal will simplify forgiveness for millions of our smallest businesses -- including many sole proprietors -- who used funds from our Paycheck Protection Program loans to survive the pandemic,” said Administrator Isabel Casillas Guzman. “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 nation’s economy.”
The new forgiveness portal is intended help rush relief to over 6.5 million smallest of small businesses, a priority for the SBA. The Agency is also creating a PPP customer service team to answer questions and directly assist borrowers with their forgiveness applications. Borrowers needing assistance or with questions can call 1-877-552-2692, Monday – Friday, 8 a.m. to 8 p.m. ET. Lenders must opt into the program through https://directforgiveness.sba.gov.
Paycheck Protection Program Summa
- Overall, the SBA and lenders worked to originate over 11.7 million loans totaling nearly $800 billion in relief to over 8.5 million small businesses.
- In 2021:
- SBA approved over 6.5 million loans totaling over $275 billion
- The average PPP loan size was approximately $42,000 (compared to $101,000 in 2020)
- 96% of PPP loans went to businesses with fewer than 20 employees (compared to 87% in 2020)
- 32% of loans went to businesses in low to moderate income communities (compared to 24% in 2020).
Direct Forgiveness Summary
- Over 600 banks have opted into direct forgiveness, enabling over 2.17 million borrowers to apply through the portal (This represents 30% of loans $150,000 or less that have not yet submitted for forgiveness).
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