The Small Business Administration (SBA) officially opened its PPP loan forgiveness portal on August 10th. However, many banks have decided not to begin the loan forgiveness process as they wait on further guidance from the SBA. Many lenders will not confirm a date, with some estimating that their forgiveness process will be up and running sometime in September. Your lender will communicate with you as more information becomes available.
Small loans (under $150,000) may be automatically forgiven. Pending legislation in Congress seeks to help out small businesses and alleviate processing backlogs. The vast majority of PPP loans are under $150,000. Understandably, most banks want to wait and see what develops before devoting time and resources to processing forgiveness for these small loans. On top of that, the loan forgiveness period has already been changed multiple times.
Stay tuned to this space for more updates as they become available and reach out to your lender if you have questions about your loan. Visit the SBA’s PPP website for more information.