SBA Announces Borrower-Friendly Paycheck Protection Program Initiatives
Joseph Most, J.D.
08.02.21 | Client Alert
SBA Direct Forgiveness Portal
On July 29, the Small Business Administration (“SBA”) announced that it will be launching a new direct Paycheck Protection Program (“PPP”) loan forgiveness portal for PPP loans of $150,000 or less. Previously, all loan forgiveness applications were required to be submitted through PPP lenders. Applying for loan forgiveness through lenders with different protocols has caused complexity and delays for many borrowers. The portal is set to be opened on August 4 and should allow borrowers with smaller PPP loans to directly apply for, and receive, loan forgiveness in a more simplified and streamlined manner. However, lenders will need to opt into the portal program to allow for direct forgiveness.
SBA Intends to Discontinue Loan Necessity Questionnaire
The SBA has informed lenders that it is eliminating forms 3509 and 3510 (PPP loan necessity questionnaires, for-profit and not-for-profit borrowers respectively). The questionnaires were automatically sent to PPP borrowers of loans over $2,000,000 (together with affiliates) and were designed to aid the SBA in reviewing the certification on the original PPP loan application that, “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant,” was made in good faith. Borrowers will no longer be required to submit these forms but should confirm with their lenders if they were previously requested to do so.
Questions? Contact Joseph Most at 212.699.8813 | firstname.lastname@example.org or reach out to your Berdon advisor.