06 Aug Update: Streamlined PPP Loan Forgiveness Process
As we mentioned in an earlier blog post, your deadline to apply for PPP Loan forgiveness may be approaching. If you’re preparing to apply, the process may be simpler for you than originally expected, depending on your circumstances. On July 28, the Small Business Administration (SBA) published new guidance designed to simplify and streamline the forgiveness process for borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less. Here’s what you need to know about PPP Loan forgiveness.
The new guidance has three components:
A new platform to apply for PPP Loan Forgiveness
The SBA announced that it will launch a new platform (website portal) on August 4th. Borrowers will be able to apply for loan forgiveness directly with the SBA instead of having to go through their lender. This only applies if their PPP lender opts-in to using the platform.
COVID Revenue Reduction Score
The SBA also introduced a COVID Revenue Reduction Score. It can be used for second-draw PPP loans if the borrower did not submit documentation of required revenue reduction at the time of applying for forgiveness.
Extended loan deferment period
The loan deferment period for PPP loans will be extended in cases where the borrower files a timely appeal of a final SBA loan review decision.
Borrowers should continue to submit loan forgiveness applications to their lenders, rather than through the platform, under the following circumstances:
- Their PPP lender does not opt-in to use the direct borrower forgiveness process;
- The borrower’s PPP loan is greater than $150,000;
- The borrower does not agree with the data as provided by the SBA system of record;
- The borrower cannot validate their identity in the platform (for example, if there is an unreported change of ownership); or
- For any other reason where the platform rejects the borrower’s submission.
If you need guidance on the next steps for applying for PPP loan forgiveness and ERTC, we encourage you to reach out to our team at assist@reconciledsolutions.net for support.
