SBA Announces PPP Direct Forgiveness Portal – less than $150K
SBA Announces Opening of Paycheck Protection Program Direct Forgiveness Portal
New portal will streamline applications for loans $150K or less for over 6.5 million businesses
The U.S. Small Business Administration (SBA) is launching a streamlined application portal to allow borrowers with Paycheck Protection Program (PPP) loans $150,000 or less through participating lenders to apply for forgiveness directly through a new online portal.
“The SBA’s new streamlined application portal will simplify forgiveness for millions of our smallest businesses -- including many sole proprietors -- who used funds from our Paycheck Protection Program loans to survive the pandemic,” said Administrator Isabel Casillas Guzman. “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.”
The new forgiveness platform will begin accepting applications from borrowers on August 4th, 2021. An informational guide to navigating the portal is available here. In addition to the technology platform, the SBA has created a customer service team to answer questions and directly assist PPP borrowers with their forgiveness applications. Borrowers that need assistance or have questions should call (877) 552-2692, Monday – Friday, 8 a.m. - 8 p.m. EST.
As a reminder – loans through the federal PPP program are not automatically forgiven by the Small Business Administration (SBA). To apply for loan forgiveness, you must complete and submit the loan forgiveness application or apply through the new SBA PPP Portal.
Be aware if you do not apply for and receive forgiveness from the SBA, you will be required to begin making monthly payments on your loan. The monthly principal and interest payment due will not be waived, and for many borrowers this will cause a substantial financial burden.
First National Bank LI borrowers can continue to contact your local branch or loan officer for help navigating the forgiveness process. We hope the funding has positively impacted your business and provided you with additional financial security.