The SBA issued an interim final rule designed to speed up the forgiveness process for Paycheck Protection Program loans of $150,000 or less.
Interim Final Rule: The IFR:
- Allows lenders to use an SBA-generated COVID Revenue Reduction Score at the time of forgiveness in place of documenting the required revenue reduction for Second Draw PPP Loans.
- Establishes a direct borrower forgiveness portal as an alternative method of submitting loan forgiveness applications if the lender chooses to opt in. Lenders will still need to review the borrower-submitted information on the PPP platform and make a forgiveness decision.
Guidance: The rule says the SBA plans to issue more detailed procedural guidance on using the COVID Revenue Reduction Score.
Timing: In a news release, the SBA said the new forgiveness platform is targeted to go live on Aug. 4 and lenders may opt in through the SBA PPP Direct Forgiveness Portal.
Support: Borrowers that need assistance may call (877) 552-2692, Monday-Friday, 8 a.m. - 8 p.m. (Eastern time).
More: The IFR also extends the loan deferment period for PPP loans in which the borrower files an appeal of a final SBA loan review decision with the SBA Office of Hearings and Appeals.
Background: The PPP closed to new loan applications in June, with funding exhausted. Out of 11.8 million PPP loans made, 4.5 million forgiveness applications have been submitted to SBA and 4.3 million have been approved and paid as of July 12.
Resources: Additional PPP information is available on ICBA's PPP Resources page.
