Paycheck Protection Program
SBA PPP Forgiveness Process: August 04, 2021 UPDATE
The Small Business Administration launched an initiative to accept Paycheck Protection Program loan forgiveness applications directly for loans of $150,000 or less. The SBA Direct Forgiveness Portal allows borrowers with loans of $150,000 or less to apply for loan forgiveness directly to the SBA using the electronic equivalent of SBA Form 3508S. The link for the platform is below:
SBA Direct Forgiveness Portal
Loans exceeding $150,000 still require Forgiveness Application 3508EZ or 3508, dependent upon circumstances. Here is a link to each updated form: Form 3508EZ and Form 3508. The Direct Forgiveness Portal cannot be used if your loan exceeded $150,000. Please continue to submit these applications to your local banker. Contact your local banker if you have questions regarding your forgiveness application.
Also, certain borrowers who received second-draw PPP loans amounting to $150,000 or less will not have to supply documentation proving a 25% revenue reduction in 2020. Each Second Draw PPP Loan of $150,000 or less has been assigned a COVID Revenue Reduction Score. If the score meets or exceeds the value required per SBA guidelines, revenue reduction documentation will not be required when applying for forgiveness. The score is available in the Direct Forgiveness Portal.
Please continue educating yourself about the PPP program. You can access current information from the following:
US Treasury: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
SBA: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
First Palmetto Updates: https://www.firstpalmetto.com/ppp/
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Important Disclosure Information: First Palmetto Bank will process your application for loan forgiveness as the originating lender for your PPP loan based on the guidance and parameters established by the SBA or US Treasury, which may be subject to change. The SBA and/or US Treasury, and not First Palmetto Bank, sets criteria for loan forgiveness, including eligibility criteria and the parameters that determine how much of your loan may be forgiven. The SBA or US Treasury may instruct First Palmetto Bank to hold your loan forgiveness application if it decides to conduct a review of your application, or it may instruct the Bank to deny your loan forgiveness application. In its guidance, the SBA has indicated the reasons why it may decide to review an application for loan forgiveness.