SBA Simplifies Paycheck Protection (PPP) Loan Forgiveness
Small businesses that borrowed $150K or less can soon apply for loan forgiveness directly through the Small Business Administration rather than their lender.
WASHINGTON – The U.S. Small Business Administration (SBA) launched a streamlined application portal for borrowers who took out a Paycheck Protection Program (PPP) loan under $150,000 through participating lenders. Rather than go through that lender, SBA says they can now apply for forgiveness directly through the SBA starting on Aug. 4, 2021.
“With the new simplified application portal, thousands of Southeastern businesses, and even sole proprietorships that borrowed PPP funds, will have these funds forgiven,” says Janita R. Stewart, acting regional administrator for the SBA’s Southeastern Region.
Stewart says most entrepreneurs waiting for forgiveness have loans under $150,000, and “It was time we made the process more efficient so businesses can get back to sustaining our communities.”
The change will help speed relief to the smallest of small businesses, which SBA says has been its priority since day one.
To qualify for direct forgiveness from the SBA, the lender who originated the PPP loan must opt-in to the program, which SBA says they can do at directforgiveness.sba.gov.
In addition to the technology platform, SBA says a PPP customer service team will answer questions and directly assist borrowers with their forgiveness applications. Those who need assistance or have questions can call (877) 552-2692, Monday-Friday, 8 a.m.-8 p.m. EDT.
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