7.30.21 | COVID-19 Resources, Nonprofit Tax | Email Alerts
SBA Simplifies Forgiveness Process for PPP Loans of $150,000 or Less
On July 28, 2021, the U.S. Small Business Association (SBA) announced a new SBA PPP Direct Forgiveness Portal that will allow borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less through participating lenders to apply for forgiveness directly with the SBA, rather than going through their lender. According to the SBA, 93% of outstanding PPP loans are $150,000 or less.print
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”
Please contact us with any questions about how this may affect your organization.