SBA Simplifies PPP Loan Forgiveness
The end of the Paycheck Protection Program (PPP), which provided federal relief to small businesses like ACCA members, along with non-profits during the COVID-19 pandemic, will be sped up thanks to new guidance from the Small Business Administration (SBA). An online platform will be set up August 4th, 2021, by the SBA to expedite the process of PPP loan forgiveness and accept applications directly from borrowers.
The new platform applies for loans under $150,000, which account for around 90% of the outstanding PPP loans. Furthermore, under this announcement, those who received second draw PPP loans under $150,000 will not have to provide previously needed documentation showing a 25% decrease in revenue reduction.
With the end of the pandemic hopefully near, the SBA wants to put PPP loan forgiveness behind them for the sake of borrowers, lenders, and the government, according to an SBA associate administrator. PPP loans provided over $800 billion across 11.7 million forgivable loans in a span of just over a year and kept many small businesses afloat during the hardships of COVID-19. Now these small businesses should be on the lookout for the upcoming online forgiveness program platform from the SBA.
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