Nonprofit Resources


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.

The new application portal will launch on August 4, 2021, at 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.

Leave a Comment