August 9, 2021
A little over a month ago, I wrote about Paycheck Protection Loan forgiveness and how to apply. Well, guess what? Things have changed since then. Two of the biggest changes could be good news for you. Before I go into details, the changes apply to anyone who received less than $150,000, which is the vast majority of people who received funds.
The first big change is the creation of a forgiveness application portal where you can apply directly to the SBA, rather than through your lender. Many smaller banks were getting bogged down with applications and processing them, so the SBA created the portal to streamline the process and ease the burden on smaller lenders. The result is (hopefully!) an easier, faster process. You will need to check with your bank to see if they are participating in the portal process, or you can check the SBA website for a list of lenders who are.
Another smaller change only applies to those of you who received a second draw loan and did not submit your revenue reduction documentation at the time you applied. To make things easier, the SBA has introduced the COVID Revenue Reduction Score. You will be assigned a score after answering a variety of questions, and if your meets or exceeds the value to validate revenue reduction, you will not need to submit additional documentation.
The final big change is in regards to deferment and the appeal process. Previously, if your forgiveness application was denied, you would need to begin making payments during the appeal process. Now, your appeal is filed in a timely matter (within 30 days of receiving a decision), your loan remains in deferment until you get the results of your appeal.
A refresher on when to apply for forgiveness: First you need to know how long your covered period was (the length of time you had to use the funds), which ranges from 8 to 24 weeks. Then add ten months. You will want to apply before that time, or you will need to start making payments.
You can find the application portal here. If you have any questions, check out the SBA’s PPP Forgivenes or FAQ page. Still have questions? Reach out! As always, if anything changes, I will let you know right away, so be sure to like my Facebook page or follow me on Instagram for the latest updates as soon as I have them!
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