The Small Business Administration (SBA) has issued a new policy change aimed at streamlining the Paycheck Protection Program (PPP) loan forgiveness application process.
The adjustment is intended to support SBA’s ongoing efforts to locate PPP borrowers who have not yet applied for forgiveness and encourage them to do so, reinforcing SBA’s commitment to efficiency and support for small business owners.
Effective immediately, all PPP borrowers can apply for loan forgiveness through the SBA PPP Direct Forgiveness Portal, regardless of their loan size or Lender.
This change is designed to simplify the forgiveness process, ensuring that more borrowers can access the support they need with greater ease.
Lenders must also accept forgiveness applications from borrowers who are unable to use the Direct Forgiveness Platform.
The SBA has also made it mandatory for all PPP Lenders to process forgiveness applications submitted via the SBA PPP Direct Forgiveness Portal.
This includes those Lenders who have previously established their own internal processes for PPP forgiveness.
To facilitate this transition, SBA will automatically enroll all Lenders not currently participating in the direct forgiveness platform.
It is important to note that all existing program requirements remain in effect, and this policy change does not alter the fundamental criteria for loan forgiveness
However, it broadens the accessibility of the forgiveness process to a wider range of borrowers. The SBA believes that these changes will benefit both borrowers and Lenders, ensuring quicker, more efficient access to forgiveness.