Aug 28 – Those who have received Payments Protection loans and do not want to delay payments will want to apply for forgiveness to their lenders or through the Small Business Administration Direct Borrower Forgiveness Portal.
The deadline for submitting an application for forgiveness is set on an individual basis.
“Since the creation, signing and financing of the PPP loan, it has been 10 months since the first payment on this note was due,” said Terry Lockhart, chief credit officer, Bank of Cherokee County. “Basically, they have eight to 24 weeks to spend money and disburse funds. After these eight to 24 weeks, they have 10 months from the date of signing to file a petition for forgiveness without making a payment. “
So, for example, if the covered period – eight to 24 weeks – for a PPP loan ended on October 30, 2020, the deadline for submitting a forgiveness application would be August 30, 2021. About 85-90 percent of borrowers at BCC have already received their loans have been fully forgiven.
“I know a lot of banks are not that high,” Lockhart said. “There are a ton of them that don’t even come close, but we have a pretty good process and we started early on.”
Those unsure of when to apply for forgiveness should contact their bank or lender. This will save them from having to return dollars after the disaster, and will also benefit the bank.
“From the bank’s point of view, we want this to be forgiven and written off the books because we took out a loan at 1 percent,” Lockhart said. “The sooner we get a loan forgiveness, the sooner we can re-lend this money at 4, 5 or 6 percent and get more income for the bank.”
Lockhart advises borrowers to fill out their forgiveness applications as soon as possible and turn them into their lender.
“Because right now the pandemic and everything that is happening is still fresh,” he said. “I could only think that over time, yes, they are going to forgive them, but I would like to be in the foreground and not wait for the end, hoping that mine is forgiven.”
People who have received a PPP loan can also go through the SBA Direct Borrower Forgiveness Portal, which opened on 4 August. Borrowers can submit forms of forgiveness using a computer or smartphone. On average, users submit their applications in six minutes and receive a forgiveness decision within a week of submitting the application. This way, borrowers do not need to go to their local lenders, which they used to get their loans.
“We are incredibly pleased that in just two weeks, the Direct Borrower Forgiveness Portal provides small businesses with an easy and convenient way to apply for forgiveness and receive assistance with these important PPP loans,” said Patrick Kelly, SBA Administrator Assistant. Capital Access Office. “We have already seen hundreds of thousands of borrowers go through this process quickly and easily, and we continue to actively assist borrowers to apply through extensive information programs and webinars.”
Of the 340,000 applications filed through the portal, half have already been approved for full or partial forgiveness, totaling more than $ 2.4 billion. Borrowers whose loans are made through banks who choose not to subscribe to the SBA’s direct forgiveness portal must apply for forgiveness through their lender.
For more information on the SBA forgiveness portal visit www.sba.gov…