The SBA notified banks, which were responsible for issuing government-backed loans and processing forgiveness requests, that the agency is creating its own consumer-focused online platform for forgiveness.
Rather than forcing borrowers to apply through banks, the SBA’s forgiveness site will accept applications from small borrowers directly in a format that officials estimate will take businesses only a few minutes. Lenders will still have a say in whether individual PPP loans should be forgiven, but the goal is to reduce the amount of time and effort that banks have to invest in the process.
In addition, the SBA will announce plans to relieve certain borrowers who received their second PPP loans of less than $ 150,000 this year from the need to provide documentation proving that they experienced a 25 percent cut in earnings in 2020 that was required to receive assistance. … The agency told lenders that it uses a combination of data sets to make decisions, including information based on attendance and credit card debits.
SBA Deputy Administrator Patrick Kelly spoke to lenders personally at a webinar on Tuesday as he urged them to choose the SBA’s new forgiveness platform – “Give it to the government and take your life back.” The SBA plans to pilot the site on Wednesday and launch around August 4th.
“We all want to end forgiveness — borrowers, lenders, government — by fall across the board,” Kelly said. “So this is the final push that will hopefully make PPPs become a rearview mirror for borrowers, lenders and agencies.”