SBA Launches PPP Loan Forgiveness Site
The U.S. Small Business Administration will launch a streamlined Paycheck Protection Program loan forgiveness application site in August for borrowers with loans of $150,000 or less.
SBA administrator Isabel Casillas Guzman said the vast majority of PPP recipients received pandemic relief loans of less than $150,000.
“These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process,” she said in a July 28 statement.
“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.”
The SBA says the site will benefit about 6.5 million small businesses, simplifying a forgiveness process that has drawn criticism for its complexity.
Participating lenders are required to opt-in to the program, which begins accepting forgiveness applications from borrowers Aug. 4.
The agency will also enhance its customer service efforts, with a dedicated call line (877.552.2692) in operation weekdays between 8 am and 8 pm.
Congress created the PPP program in 2020 through the Coronavirus Aid, Relief, and Economic Security Act, designed to provide employers with 500 or fewer employees emergency loans to survive the pandemic.
Although the loans are low interest, they are forgiven if at least 60% of the funds are used for payroll costs, with additional conditions on using the balance of loan funds.
Nationally, more than 11.8 million small businesses received loans totaling $799.8 billion, with an average loan size of $42,000.
In Connecticut, 55,612 small businesses received PPP loans totaling $3.2 billion.
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