SBA Announces Opening of Paycheck Protection Program Direct Forgiveness Portal

Facebooktwitterlinkedinmail

SBA Announces Opening of Paycheck Protection Program Direct Forgiveness Portal  

New portal will streamline applications for loans $150K or less

WASHINGTON – The U.S. Small Business Administration 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 the SBA.    
  
“The opening of this portal allows a simpler method for borrower and lender to meet the need of the business, lender and the agency,” said Region 6 Acting Administrator Herbert Austin. 

This new change will help rush relief to over 6.5 million smallest of small businesses nationally, which has been the priority of SBA Administrator Isabel Guzman since day one.

The new forgiveness platform will begin accepting applications from borrowers on August 4th, 2021.  Lenders are required to opt-in to this program.

PeopleFund, a lender in Austin, TX, was one of the first lenders in the area to sign up for the new portal in order to speed their forgiveness process.

“At the onset of the COVID-19 pandemic, PeopleFund started offering loans with no interest and no payments to bridge small businesses until the arrival of Federal help. That help first arrived in the form of the Paycheck Protection Program. For PeopleFund, it was an easy decision. We were already a proud SBA Lender, and it was the right thing to do. So, just as first responders, we set out to help as many businesses as possible. In the last two years PeopleFund deployed $40 million and 1,800 PPP loans, helping more than 5,000 Texans retain their jobs. Across all programs, we deployed more capital than in the previous five years combined. Hope for a better future kept us going and we are deeply proud of the role that PeopleFund and many other organizations played during the crisis,” said Gustavo Lasala, President & CEO of PeopleFund

In addition to the technology platform, the SBA is standing 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. EST.

“This initiative will allow PPP borrowers to put their concerns of achieving full forgiveness behind them and focus on operating and growing their businesses again,” said Patrick Kelley, Associate Administrator for SBA’s Office of Capital Access. “We are pleased to be able to assist financial institutions across the U.S. in processing forgiveness applications for small business owners.”   

Paycheck Protection Program Summary

  • Overall, the SBA and lenders have worked to originate over 11.7 million loans totaling nearly $800 billion in relief to over 8.5 million small businesses.

In 2021:

  • SBA approved over 6.5M loans totaling over $275B
  • The average loan size was ~$42 thousand (compared to $101 thousand in 2020)
  • 96% of loans went to businesses with fewer than 20 employees (compared to just 87% in 2020.)
  • 32% of loans went to businesses in LMI communities (compared to just 24% in 2020)

Direct Forgiveness Summary

  • Over 600 banks have opted into direct forgiveness, enabling over 2.17mm borrowers to apply through the portal (This represents 30% of loans $150,000 or less that have not yet submitted for forgiveness)
Facebooktwitterlinkedinmail