The PPP Loan Forgiveness Portal is now open. The Paycheck Protection Program Direct Forgiveness Portal is a US Small Business Administration (SBA) initiative.

The new application portal makes it easier for loans of $150,000 or less. It helps more than 6.5 million businesses. Now, businesses can apply for forgiveness directly through the SBA.

PPP Loan Forgiveness Portal Now Open

Since day one, the SBA has focused on helping small businesses. The Payment Protection Program helps keep workers employed during the Covid-19 crisis.

This new technology will help the smallest businesses get loans faster and more efficiently.

A Streamlined Approach

This initiative lets PPP borrowers focus on their business. They can stop worrying about forgiveness and grow their business.

Isabel Casillas Guzman, SBA administrator, talked about the new portal. She said it will help small businesses with forgiveness: ““The SBA’s new streamlined application portal will simplify forgiveness for millions of our smallest businesses – including many sole proprietors – who used funds from our Paycheck Protection Program loans to survive the pandemic.

“The vast majority of businesses waiting for forgiveness have loans under $150,000. These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process. 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,” Isabel Casillas Guzman continued.

In 2021, the SBA approved over 6.5 million loans, totaling over $275 billion. 96% of these loans went to businesses with less than 20 employees.

More than 600 banks have joined the direct forgiveness program. This lets over 2.17 million borrowers apply through the portal. This is 30% of all loans.

Simplifying Forgiveness

Before the Direct Forgiveness Portal, borrowers had to send documents to lenders. The lenders then sent the information to the SBA. This included Forms 3508, 3508EZ, or 3508S.

The new process is simpler. Small business borrowers of loans of $150,000 or less can ask for forgiveness directly from the SBA. The lender can approve or reject the application. Once approved by the lender, the SBA will review it.

The new PPP Loan Forgiveness Portal started accepting applications on August 4, 2021. Lenders can join the program at the Direct Forgiveness SBA website.

The SBA also has a PPP customer service team. They help answer questions and assist with forgiveness applications.