On August 10, 2020, the Small Business Administration (the “SBA”) opened the “Forgiveness Portal,” permitting lenders of Payroll Protection Program (“PPP”) loans to accept forgiveness applications from PPP loan recipients. In addition, Frequently Asked Questions (FAQs) on PPP Loan Forgiveness (the “FAQs”) were published, and will follow, and supplement, the detailed instructions issued by the SBA described here.
The FAQs address and clarify several aspects of the forgiveness application process. Of particular note:
- General Loan Forgiveness.
- Loan Forgiveness Payroll Costs.
Further details can be found in our most recent COVID-19 Alert.
Although lenders are now authorized to accept and process PPP borrower forgiveness applications, it appears that most lenders are intent to delay the process. As such, with 5.2 million PPP loan outstanding, a backlog of forgiveness applications is expected, and PPP borrowers should anticipate delays in the processing of forgiveness applications.
More details can be found in our COVID-19 Response Collection.