SBA to Establish Direct PPP Forgiveness Portal

The Small Business Administration is preparing to launch a streamlined application portal that will allow Paycheck Protection Program borrowers with loans of $150,000 or less to apply for forgiveness through the SBA.

The new platform will begin accepting applications from borrowers on Aug. 4.

Borrowers will not be required to submit forgiveness applications through their lenders, but lenders will have to opt into the new portal for their borrowers to use the new system.

“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 SBA Administrator Isabel Casillas Guzman. 

The SBA said that despite the simplified loan forgiveness application for borrowers with loans of less than $150,000 or less, many small PPP lenders have expressed concern that they do not have the technology or human resources to process the applications.

Even if lenders do not opt into the new system, the SBA is allowing lenders to use a COVID Revenue Reduction Score developed by an agency contractor as an optional way to document a borrower’s revenue drop.

“We are pleased to be able to assist financial institutions across the U.S. in processing forgiveness applications for small business owners,” said Patrick Kelley, associate administrator for the SBA’s Office of Capital Access. 

“This initiative will allow PPP borrowers to put their concerns of achieving full forgiveness behind them and focus on operating and growing their businesses again,” Kelley added.

Related:

SBA PPP Direct Forgiveness Portal

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