Borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less can apply for forgiveness via a new streamlined application portal initiated by the U.S. Small Business Administration (SBA).
The SBA’s new application portal is said to simplify forgiveness for millions of the smallest business owners — including sole proprietors — who used funds from PPP loans to endure the coronavirus pandemic.
“The vast majority of businesses waiting for forgiveness have loans under $150,000. These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process,” SBA Administrator Isabel Casillas Guzman states in an announcement. “We need to deliver forgiveness more efficiently so they can get back to enlivening our Main Streets, sustaining our neighborhoods and fueling our nation’s economy.”
The portal is intended to expedite relief to more than 6.5 million “smallest of small businesses,” according to the SBA. The new platform will begin accepting applications from borrowers on Aug. 4.
PPP Forgiveness Program Includes Over 600 Participating Banks
In addition to the technology platform, the SBA is staffing a PPP customer service team to answer questions and directly assist borrowers with their forgiveness applications. Borrowers that need assistance or have questions can call (877) 552-2692, Monday-Friday, 8 a.m.-8 p.m. EDT.
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“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,” states Patrick Kelley, associate administrator for SBA’s Office of Capital Access. “We are pleased to be able to assist financial institutions across the U.S. in processing forgiveness applications for small business owners.”
More than 600 banks are said to be participating in direct forgiveness, enabling over 2.2 million borrowers to apply through the portal. This represents 30% of loans $150,000 or less that have not yet submitted for forgiveness, according to the SBA.
Established by the CARES Act in 2020, the PPP was among the first COVID-19 small business economic aid programs and provided more than $798 billion in economic relief to small businesses and nonprofits across the nation.
You can view the Interim Final Rule on PPP Forgiveness here.
This article originally appeared on our sister publication Security Sales & Integration‘s website.