On March 13, SBA announced that, effective immediately, “it is implementing a system change that will allow all PPP borrowers to apply for loan forgiveness through the SBA PPP Direct Forgiveness Portal, regardless of their loan size or Lender”.  This change is part of SBA’s ongoing efforts to “locate PPP borrowers who have not yet applied for forgiveness and encourage them to do so, reinforcing SBA’s commitment to efficiency and support for small business owners”.

SBA has indicated that under the revised process, all PPP lenders, including those that have previously established their own internal processes for PPP forgiveness, are now required to process applications submitted via the SBA PPP Direct Forgiveness Portal.  According to the information provided by SBA, lenders can continue to use their internal systems, but now also must “review and decision any forgiveness applications received through the PPP Direct Forgiveness Portal”.  Lenders also must continue to accept forgiveness applications from borrowers who are unable to use the Direct Forgiveness Platform.  As described by SBA:  “This policy change does not alter the fundamental criteria for loan forgiveness, but rather broadens the accessibility of the forgiveness process to a wider range of borrowers. In accordance with PPP Loan Program requirements, if a Lender receives a forgiveness application from a borrower after requesting a guaranty purchase, the Lender must submit its forgiveness decision to SBA.” 

To facilitate the new process, SBA has automatically enrolled all lenders who were not previously participating in the direct forgiveness platform.  Prior to the change direct borrower access to the forgiveness portal was only available if the PPP borrower’s lender had enrolled to participate in direct forgiveness and the loan amount was $150,000 or less. 

SBA will provide PPP Forgiveness Platform training on Wednesday March 20, 12-1 PM ET — .   

Please see the SBA announcement for additional information, including links to various PPP resources and sources for assistance and support.