The global pandemic represented a significant financial crisis for the economy, and in response Congress took several actions, including the creation of the Paycheck Protection Program. This program’s aim was to provide small businesses with the financial support they needed to keep their workforces employed. The rules provided the opportunity for complete loan forgiveness as long as business’ met certain requirements. Now that those loans are coming due, the U.S. Small Business Administration created a PPP Loan Forgiveness Portal to streamline the process of applying to have repayment of the loans waived.
The PPP Loan Forgiveness Portal debuted on August 4, 2021, on the Small Business Association’s website. It is directed towards the more than 6.5 million American businesses that applied for and received loans of $150,000 or less. By logging on and completing the application, those borrowers are able to request forgiveness directly through the SBA rather than going through the time-consuming process of providing paperwork directly to the lenders from whom they received their funds. Business owners will be able focus their attention where it should be – on continuing to operate and nurture their businesses.
According to Isabel Casillas Guzman, SBA administrator, it’s all part of the SBA’s goal to provide financial support to small businesses. “The SBA’s new streamlined application portal will simplify forgiveness for millions of our smallest businesses – including many sole proprietors – who used funds from our Paycheck Protection Program loans to survive the pandemic.” She said that the portal will facilitate loans being processed much more quickly and efficiently
“The vast majority of businesses waiting for forgiveness have loans under $150,000. These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process. We need to deliver forgiveness more efficiently so they can get back to enlivening our Main Streets, sustaining our neighborhoods and fueling our nation’s economy.” Guzman reported that over $275 billion dollars have already been approved for forgiveness. That represents 6.5 million loans, 96% of which were for businesses that employed fewer than 20 workers.
At the same time that the SBA opened the portal for borrowers it invited lenders to opt into the direct forgiveness program directly through the SBA site. So far more than 600 banks have signed on, and that has opened the streamlined process to more than 2.17 million borrowers, or 30% of the total PPP loans advanced to businesses.
Those who take advantage of the Direct Forgiveness Portal will find that the program eliminates the need for borrowers of loans of $150,000 or less to submit Forms 3508, 3508EZ, or 3508S to their lenders. Where the previous process saw lenders submit the documentation collected to the SBA for approval of forgiveness. Once the information is approved by the lender through the portal, the application will be complete.
In addition to eliminating paperwork and wait times, the Small Business Administration has also introduced a dedicated customer service team specifically to address issues regarding the PPP forgiveness applications.
You can access the PPP forgiveness portal here. Contact your business accountant for help if needed.
About Frank Jenkins Jr
Frank Jenkins Jr. CPA is the managing partner of Adams, Jenkins & Cheatham, a CPA practice based in Midlothian, VA. Frank specializes in Consulting services, tax planning, audit & assurances. "I genuinely care about our clients because I have a personal connection with them." He is active in the community and belongs to the AICPA and the VSCPA.
