|In Less Than Two Weeks, Paycheck Protection Program Direct Borrower Forgiveness Portal Surpasses Expectations, Accepts More Than 340K Submissions
Since the opening of the Paycheck Protection Program (PPP) Direct Borrower Forgiveness Portal on August 4, the U.S. Small Business Administration has received more than 340,000 submissions from borrowers with PPP loans of $150,000 or less, highlighting Administrator Isabella Casillas Guzman’s priority of rushing relief to the smallest of small businesses and far exceeding expectations.
Before direct forgiveness, borrowers had to take the initiative to download forgiveness forms or get forms from their banks to complete and submit. Some lenders had not yet built the technology or processes to even begin accepting forgiveness applications, and many did not actively reach out to borrowers to help them through the process. Forgiveness was not user-friendly, which is why millions of borrowers, including over 700,000 loans made in 2020, had yet to submit their one-page application.
Through this simpler process, SBA proactively reaches out to borrowers and provides a pre-populated forgiveness form to the borrower that they can complete in the new direct forgiveness portal. Borrowers can submit using a computer or smartphone. On average users submit their applications in only six minutes and receive their forgiveness decisions within a week from the date of submission. Of the 340,000 applications submitted through the portal, half have already been approved for full or partial forgiveness, totaling more than $2.4 billion.
Borrowers who are interested in starting their applications can access the portal here. The SBA also encourages interested borrowers to attend an upcoming live webinar and Q&A sessions:
· August 26, 2021, 2:30 p.m. EDT
· September 2, 2021, 2:30 p.m. EDT
Borrowers whose loans are through banks that have chosen not to opt-in to the SBA’s direct forgiveness portal must apply through their lender for forgiveness. To ensure that direct forgiveness relief goes to communities and small businesses with the most need, the SBA remains committed to reducing fraud across programs.