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At the end of July, the Small Business Administration (SBA) published guidance to help simplify the Paycheck Protection Program (PPP) forgiveness process for businesses and nonprofits with loans up to $150,000. According to the SBA, loans of $150,000 or less account for 93% of outstanding PPP loans.
The simplified process is in response to small PPP lenders that have experienced difficulties keeping up with the volume of loans to be processed. The SBA is also responding to concerns from lenders that the extensive documentation required for the forgiveness process is delaying the process for second-draw PPP loans of $150,000 or less.
The new SBA PPP Direct Forgiveness Portal started accepting applications from borrowers on August 4th, 2021. The new platform integrates with the SBA’s PPP platform and allows borrowers to apply for loan forgiveness using an electronic equivalent of SBA Form 3508S.
Borrowers should continue to submit PPP loan forgiveness applications through their respective lenders rather than through the new direct forgiveness portal if the lender does not opt in to use the platform or if the loan amount is greater than $150,000. Additionally, if there are data discrepancies or the portal rejects the submission, borrowers should submit their PPP loan forgiveness through their lenders.
In addition to the new SBA PPP Direct Forgiveness Portal, the SBA has a PPP customer service team available to assist borrowers with the forgiveness applications: 877-552-2692, M-F, 8am-8pm EST.
We are happy to discuss how the simplified PPP forgiveness process may impact your Accounting, Bookkeeping, and/or Business Tax Planning. To set up a free consultation, please click on the button below to schedule a time that works best for you.