Some good news to report for certain small businesses that have been issued loans pursuant to the Paycheck Protection Program (PPP).
Beginning next week (August 4 to be exact), those that have borrowed $150,000 or less in PPP proceeds can apply for loan forgiveness directly through an online portal to be launched by the Small Business Administration (SBA). This option streamlines the forgiveness process by taking private financial institutions—the ones that have handled most aspects of the PPP since its inception—out of the mix.
This is a significant development given that the vast majority of PPP loans issued fall within the $150,000 threshold. According to the SBA, $806 billion has been lent to millions of small businesses between April 2020 and June 2021, most of these being sole proprietors or so-called microbusinesses having just a few employees. The SBA estimates that the new program will help 6.5 million of these businesses expedite the loan forgiveness process, allowing them to focus on their growth and operations
Of note, lenders are required to opt-in to the new PPP forgiveness platform, giving them the choice as to whether they retain customer relationship oversight.
Should you have any questions about the PPP, including loan forgiveness, the COVID-19 team at Michelman & Robinson, LLP is here to help. Borrowers may also call (877) 552-2692 to speak directly with the SBA’s PPP customer service team.
This blog post is not offered, and should not be relied on, as legal advice. You should consult an attorney for advice in specific situations.