WASHINGTON – U.S. Small Business Administration (SBA) Launches Streamlined Application Portal to Enable Borrowers with Paycheck Protection Program (PPP) Loans of $ 150,000 or Less Through Participating Lenders to request a discount directly through the SBA.
“The SBA’s new streamlined application portal will make forgiveness easier for millions of our smaller businesses – including many sole proprietorships – who have used the funds from our Paycheck Protection Program loans to survive the pandemic.” Â», Said administrator Isabel Casillas Guzman. âThe vast majority of businesses awaiting forgiveness have loans of less than $ 150,000. These entrepreneurs are busy running their business and face an overly complicated forgiveness process. We need to offer them forgiveness more effectively so that they can start again to liven up our main streets, to support our neighborhoods and to fuel the economy of our country. “
This new change will help accelerate relief for over 6.5 million small businesses, which has been the Administrator’s priority since day one. The new forgiveness platform began accepting requests from borrowers on August 4.
Lenders are required to register for this program through https://directforgiveness.sba.gov. In addition to the technology platform, the SBA is setting up a PPP customer service team to answer questions and directly assist borrowers with their rebate requests. Borrowers who need help or have questions should call 877-552-2692, Monday through Friday, 8 a.m. to 8 p.m. EST.
“This initiative will allow PPP borrowers to put their worries of obtaining full forgiveness behind them and return to focusing on running and growing their business,” said Patrick Kelley, associate administrator of the Office of Access to the Internet. capital of the SBA. âWe are excited to be able to help financial institutions across the United States process pardon requests for small business owners. ”
Summary of the Paycheque Protection Program
â Overall, the SBA and lenders have worked to make more than 11.7 million loans totaling nearly $ 800 billion in aid to more than 8.5 million small businesses.
â SBA approved over 6.5 million loans totaling over $ 275 billion
â The average loan amount was around $ 42,000 (compared to $ 101,000 in 2020)
â 96% of loans went to companies with less than 20 employees (compared to only 87% in 2020.)
â 32% of loans were granted to companies in IMT communities (compared to only 24% in 2020)
Summary of direct forgiveness
â More than 600 banks have opted for direct remission, allowing over 2.17mm of borrowers to apply through the portal (this represents 30% of loans of $ 150,000 or less that have not yet requested a remission. )
âAs one of the nation’s leading PPP lenders, Customers Bank is proud to partner with SBA to provide responsive digital loan cancellation service to small business borrowers,â said Sam Sidhu, President and CEO of the management of the bank. âThe SBA’s streamlined and efficient PPP loan cancellation portal will help borrowers and lenders move forward with economic growth and job creation after the pandemic. We encourage other lenders to join Customers Bank and register for the SBA Portal.
Established by the CARES Act in 2020, the PPP was one of the first COVID-19 small business economic assistance programs and provided more than $ 798 billion in economic assistance to small businesses and non-profit organizations. profit across the country, keeping employees at work and helping businesses come back stronger than ever. See the provisional final rule on PPP forgiveness.
Other programs include the Economic Disaster Loan (EIDL), EIDL Advance, Targeted EIDL Advance, Supplemental EIDL Advance, Restaurant Revitalization Fund, Grant for Closed Site Operators, and the Program SBA debt relief. To learn more about these programs, please visit http://www.sba.gov/relief.
Submitted by the US Small Business Association.