WASHINGTON, D.C. — The U.S. Small Business Administration is launching a streamlined application portal to allow borrowers with Paycheck Protection Program (PPP) loans under $150,000 through participating lenders to apply for forgiveness directly through the SBA.
This new change will help rush relief to over 6.5 million of the smallest businesses in the Southeast, which has been the Administrator’s priority since day one. The new forgiveness platform will begin accepting applications from borrowers on August 4, 2021.
Lenders are required to opt-in to this program through https://directforgiveness.sba.gov. In addition to the technology platform, the SBA is setting up a PPP customer service team to answer questions and directly assist 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. ET.
Paycheck Protection Program Summary:
- Overall, the SBA and lenders have worked to originate over 11.7 million PPP loans, totaling nearly $800 billion in relief to over 8.5 million small businesses. In 2021:
- SBA approved over 6.5 million loans totaling over $275B
- The average loan size was about $42,000, compared to $101,000 in 2020
- 96% of loans went to businesses with fewer than 20 employees, compared to 87% in 2020
- 32% of loans went to businesses into low-to-moderate income (LMI) communities, compared to 24% in 2020
Direct Forgiveness Summary:
- Over 600 banks have opted into direct forgiveness, enabling over 2.17 million borrowers to apply through the portal (This represents 30% of loans $150,000 or less that have not yet been submitted for forgiveness)
Established by the CARES Act in 2020, the PPP was among the first COVID-19 small business economic aid programs. It provided more than $798 billion in economic relief to small businesses and nonprofits across the nation, keeping employees working, and helping businesses come back stronger than ever.
Other programs include Economic Injury Disaster Loan (EIDL), EIDL Advance, Targeted EIDL Advance, Supplemental EIDL Advance, Restaurant Revitalization Fund, Shuttered Venue Operators Grant, and SBA Debt Relief program. To learn more about these programs, please visit www.sba.gov/relief.
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