SBA Simplifies Forgiveness Process for PPP Loans of $150,000 or Less
The new application portal will launch on August 4, 2021, at https://directforgiveness.sba.gov. The SBA said that 600 banks have opted in to direct forgiveness, which will allow more than 2.17 million borrowers to apply through the portal.
The SBA also published a new PPP interim final rule on July 28. Of note to borrowers, the rule:
- Allows lenders to use a COVID Revenue Reduction Score at the time of PPP loan forgiveness in lieu of actual documentation of revenue reduction to document the required revenue reduction for PPP Second Draw loans
- Extends the loan deferment period for PPP loans “where the borrower timely files an appeal of a final SBA loan review decision with the SBA Office of Hearings and Appeals”
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