This week, the Small Business Administration announced the launch of a streamlined application portal for Paycheck Protection Program (PPP) borrowers who received less than $150,000 of funding. Under the new program, borrowers who received funding of less than $150,000 will be able to apply directly with the SBA for forgiveness instead of through their original lending institution. While lending institutions have to “opt-in” to the new portal system, more than 600 lending institutions have opted in to the new portal system.
PPP Forgiveness Portal
Borrowers who qualify (which includes a majority of PPP loan recipients) will be able to begin to apply for forgiveness through the portal beginning on Aug. 4, 2021. Borrowers can apply through the portal using the following link: https://directforgiveness.sba.gov. To support the new program, the SBA has launched a hotline to assist borrowers with navigating through the system.
SBA Eliminates PPP Necessity Questionnaire
Finally, in addition to the opening of this streamlined program for borrowers under $150,000, the SBA announced that it is eliminating the PPP Necessity Questionnaire, which was previously required for borrowers with PPP loans over $2 million. In October 2020, the SBA originally announced the release of two forms: Form 3509 for for-profit borrowers and Form 3510 for nonprofit borrowers. Under the PPP Necessity Questionnaire, borrowers were required to provide the SBA with certain information supporting that they meet the requirements of the PPP loan at the time of the application – although the questionnaire asked for information related to events that would have occurred after the application submission. However, in response to significant backlash and a subsequent lawsuit, the SBA has now withdrawn this requirement and the questionnaire is no longer required for borrowers with loans in excess of $2 million.
If you have questions about the PPP Loan program or the PPP necessity testing, please contact our PPP Compliance Team including Demetrius Robinson at email@example.com or (614) 427-5749.