If You Took a PPP Loan, It May Be Much Easier to Get It Forgiven

If You Took a PPP Loan, It May Be Much Easier to Get It Forgiven 1024 683 The Provisum Group

During the height of the Pandemic in 2020, the United States Small Business Administration offered forgivable loans under the Paycheck Protection Program. Around 88,000 churches applied for these loans and received them. At The Provisum Group, we helped prepare the packets for all of our customer’s loan applications, and every one of them was approved and funded. There has been some recent guidance about the program from the SBA and we think that our good friends at the Evangelical Council for Financial Accountability have done a great job summarizing the development.

On July 28, 2021, the U.S. Small Business Association (SBA) announced a new SBA PPP Direct Forgiveness Portal that will allow borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less through participating lenders to apply for forgiveness directly with the SBA, rather than going through their lender. According to the SBA, 93% of outstanding PPP loans are $150,000 or less.

The new application portal will launch on August 4, 2021, at https://directforgiveness.sba.gov. The SBA said that 600 banks have opted in to direct forgiveness, which will allow more than 2.17 million borrowers to apply through the portal.

The SBA also published a new on July 28. Of note to borrowers, the rule:

  • Allows lenders to use a COVID Revenue Reduction Score at the time of PPP loan forgiveness in lieu of actual documentation of revenue reduction to document the required revenue reduction for PPP Second Draw loans
  • Extends the loan deferment period for PPP loans “where the borrower timely files an appeal of a final SBA loan review decision with the SBA Office of Hearings and Appeals”

If you are interested in learning more about the PPP and how The Provisum Groups assisted our clients apply for, AND get the loans forgiven, click here to start a conversation with us.

Order Connect