Published: August 11, 2021
On August 4, 2021, the Small Business Administration (SBA) opened a new portal to allow smallest businesses and nonprofits to submit a Paycheck Protection Program (PPP) loan forgiveness application directly to SBA for amounts up to $150,000. Previously, all PPP borrowers had to submit their forgiveness applications through their private lenders. Due to a statutory requirement for lenders to decide on applications within 60 days, some lenders restricted when they would accept forgiveness applications. Some borrowers also were concerned that while waiting for a forgiveness decision, they might have to start paying on the loan. This new rule is designed to remove private lenders from the middle of the loan forgiveness decision process. This new rule also eases the concerns of small entities who wondered if they had to pay back part of a PPP loan while waiting for a decision on forgiveness.
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