The SBA announces the opening of the PPP Direct Forgiveness portal
NATION – US Small Business Administration (SBA) Launches Streamlined Application Portal to Enable Borrowers Receiving Paycheck Protection Program (PPP) Loans of $ 150,000 or Less Through Lenders participants 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.” », Said administrator Isabel Casillas Guzman. “The 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 forgive more effectively so that they can start again to liven up our main streets, support our neighborhoods and fuel our country’s economy. “
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 will begin accepting borrower applications on August 4, 2021. 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 operating and growing their businesses,” said Patrick Kelley, associate administrator of the Access Office. capital of the SBA. “We 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
Overall, the SBA and lenders have strived to provide over 11.7 million loans totaling nearly $ 800 billion in relief to over 8.5 million small businesses.
The SBA has approved over 6.5 million loans totaling over $ 275 billion
The average loan amount was around $ 42,000 (up from $ 101,000 in 2020)
96% of loans went to companies with less than 20 employees (up from just 87% in 2020.)
32% of loans were granted to companies in IMT communities (compared to only 24% in 2020)
Summary of direct forgiveness
Over 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 yet to request remission )
“As 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,” said Sam Sidhu, President and CEO of the management of the bank. “The 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, 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 www.sba.gov/relief.