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Tuesday, 24 August 2021 17:35

Paycheck Protection Program Direct Borrower Forgiveness Portal Accepted More than 340K Submissions in First 2 Weeks

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Since the opening of the Paycheck Protection Program (PPP) Direct Borrower Forgiveness Portal on Aug. 4, the U.S. Small Business Administration has received more than 340,000 submissions from borrowers with PPP loans of $150,000 or less, highlighting Administrator Isabella Casillas Guzman’s priority of rushing relief to the smallest of small businesses and far exceeding expectations. 

In providing its new, streamlined portal, the SBA is also executing the Biden-Harris Administration's goal of centering equity in all programs. With outstanding debt saddling millions of disadvantaged and underserved small businesses, increasing the rate of forgiveness to PPP borrowers will have an immediate effect in helping the smallest of small businesses recover from the pandemic and access other resources.

 

Prior to this option, businesses that did not apply for forgiveness within 10 months of the end of the covered period were at risk of owing principal and interest payments on their PPP loans. 

 

"We are incredibly excited that in just two weeks, the Direct Borrower Forgiveness Portal is providing small businesses with a streamlined, user-friendly way to apply for forgiveness and receive relief on these essential PPP loans,” said Patrick Kelley, associate administrator for SBA’s Office of Capital Access. “Already, we've seen hundreds of thousands of borrowers navigating quickly and easily through the process, and we continue to proactively help borrowers apply through extensive outreach and webinar trainings. We encourage all lenders to opt-in to this tested portal." 
 
In the two weeks since the portal opened, the SBA has received more than three times the number of submissions than the top 10 PPP lenders who are not participating in Direct Forgiveness, putting the SBA on pace to close out forgiveness for the 3.4 million direct forgiveness borrowers by the end of the year. 

 

Currently, more than 1,230 PPP lenders, representing more than 50% of outstanding loan forgiveness applications, have opted-in to the Direct Borrower Forgiveness Portal.  

 

“The direct forgiveness platform has been very effective and efficient in processing applications from tens of thousands of our PPP borrowers already. This has been tremendously smooth for our borrowers, our institution and for SBA,” said Chris Hurn, CEO of Fountainhead. “Our borrowers’ feedback has been universally positive about its...


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