Small businesses were hit hard as a result of the COVID-19 pandemic, but fortunately, there was some financial relief available to business owners. One program that helped many small business owners was the little Business Administration’s Paycheck Protection Program (PPP). Actually, nearly $800 billion was given to help a lot more than 8.5 million businesses cover payroll along with other essential expenses.
Now, funds from the PPP happen to be depleted, and business people are attempting to move forward with recovery. But one major task still looms ahead for borrowers: getting their PPP loans forgiven.
Here at , we’ve fielded numerous questions surrounding PPP forgiveness. Specifically, many borrowers are unsure of how you can proceed with submitting a credit card applicatoin for full or partial forgiveness. Fortunately, the SBA has pulled through and recently announced the launch from the SBA PPP Direct Forgiveness Portal.
In this post, we’re likely to check out exactly what the portal is, what businesses can use it, and just how you can get started. Continue reading to discover everything we know so far concerning the launch from the PPP Direct Forgiveness Portal.
What May be the PPP Direct Forgiveness Portal?
The SBA PPP Direct Forgiveness Portal is an online portal designed to simplify loan forgiveness for millions of small businesses that received PPP loans. Previously, borrowers were going right to their PPP lenders to complete loan applications, that have been then listed in the SBA through the lender.
The Direct Forgiveness Portal streamlines the borrowed funds forgiveness process, allowing borrowers to more easily have their loans forgiven. Now, borrowers that meet the prerequisites can log in to the portal and ask for loan forgiveness from the SBA without having to visit their lenders. The end result is a simpler and more efficient way for borrowers to find and receive forgiveness, freeing them up for additional time to concentrate on the future of their businesses.
Direct Forgiveness Portal Requirements
Unfortunately, its not all business that received a PPP loan will be able to make use of the Direct Forgiveness Portal. In order to qualify for this process of loan forgiveness, borrowers must meet the following requirements:
- The business should have received a PPP loan of $150,000 or less.
- The lender used by the borrower must have signed up to make use of the portal.
Businesses that received PPP loans exceeding $150,000 are ineligible to make use of the Direct Forgiveness Portal. These borrowers continues to submit their loan forgiveness applications and accompanying documentation for their lenders.
The lender should also have signed up to allow its borrowers to make use of the portal. According to the SBA, over 600 lenders have already signed up to make use of the portal. However, over 5,000 lenders in total took part in the PPP program, meaning most financiers haven’t signed up for the portal quite yet. As lenders opt-in for the portal, notifications and updates may be delivered to borrowers through email or might be provided around the lender’s website.
According to the SBA, the Direct Forgiveness Portal will help simplify loan forgiveness for over 6.5 million smaller businesses and sole proprietors.
When & How You Can Apply
If your lender signed up for the portal and you borrowed $150,000 or less, your business can seek forgiveness with the PPP Direct Forgiveness Portal. This portal will be open to the public beginning August 4, 2022.
As the portal launches towards the public, the SBA and lenders will have more details available for borrowers seeking loan forgiveness. The SBA PPP Direct Forgiveness Portal can be obtained directly through the SBA’s website.
Although there’s not a lot of information now regarding the way the portal is going to be set up, we can take some clues in the lender portal setup by the SBA. Which means that borrowers can directly submit their applications and upload documentation. It’s also entirely possible that some users can make use of a COVID health score, which utilizes Dun and Bradstreet’s Commerce Health Index to assist verify revenue reduction and eligibility for PPP loan forgiveness.
The new PPP Direct Forgiveness Portal is made to simplify the loan forgiveness process, but that doesn’t imply that borrowers won’t do without questions. To address inquiries and problems, the SBA will have a PPP customer service team available for assistance. This team will be available by contacting (877) 552-2692. The PPP customer service team is going to be taking calls Monday through Friday from 8 a.m. to eight p.m. EST.
Once the portal launches, the team at will still provide updates and new information as it opens up.
Unsure if your loan qualifies for loan forgiveness? Make sure to check out our PPP Forgiveness Guide: Qualified Expenses, Forgiveness Rules, & How To Apply. If you’re ineligible to use the portal, make sure to read Which PPP Forgiveness Form Suits My Small Business? Whether you opt to use the portal or else you need to go using your lender for loan forgiveness, it’s important to be sure you act fast to possess your PPP loans forgiven. Best of luck!
