The Small Business Administration reports that more than 340,000 applications have been received from borrowers for forgiveness of loans under the Payroll Protection Program.
Loans of $ 150,000 or less were disbursed at the peak of the pandemic as businesses and the economy were largely stalled.
As outstanding debt burdens millions of disadvantaged and underserved small businesses, increasing PPP borrower forgiveness will have an immediate impact on helping the smallest small businesses recover from the pandemic and gain access to other resources.
Prior to that, if the company did not apply for forgiveness within 10 months after the end of the coverage period, these businesses could have outstanding principal and interest on 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. We encourage all lenders to subscribe to this trusted portal. ”
In the two weeks since its launch, the SBA has received three times as many applications as the top 10 PPP lenders that do not participate in Direct Forgiveness, allowing us to close the forgiveness for 3.4 million direct forgiven borrowers. the end of the year. Currently, more than 1,230 PPP lenders, representing over 50% of outstanding loan forgiveness applications, have subscribed to the Direct Borrower Forgiveness Portal.
“The Direct Forgiveness platform has already proven to be very effective and efficient in processing applications from tens of thousands of our PPP borrowers. It was extremely smooth for our borrowers, our institution and the SBA, ”said Chris Hearn, CEO of Fountainhead. “Feedback from our borrowers is generally positive about the ease of use of the app to fill out their applications in minutes. We are very proud to have played a small part in helping make this a reality. ”
Before receiving an outright forgiveness, borrowers had to take the initiative to download forgiveness forms or receive forms from their banks to fill out and submit. Some lenders have not yet developed the technology or processes to even begin accepting forgiveness applications, and many have not actively approached borrowers to assist them in the process. Forgiveness has not been user-friendly, so millions of borrowers, including over 700,000 loans issued in 2020, have yet to submit their one-page applications.
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