AUGUST 2021 UPDATE:
Business owners can now apply for forgiveness directly with the Small Business Administration (SBA). This option is only available to borrowers with loans of $150,000 or less -- which is 95 percent of all loans issued in 2021.
The new forgiveness platform for loans $150,000 or less began accepting applications from borrowers on August 4th, 2021, here:
Borrowers that need assistance or have questions should call the SBA at (877) 552-2692, Monday – Friday, 8 a.m. - 8 p.m. EST.
If your PPP amount is over $150, 000 and you received your PPP loan through a bank in the SmartBiz network, your bank will be contacting you directly about applying for Forgiveness. Otherwise, you should reach out to your lender for information about when you can apply with them.
SBA Administrator Isabel Casillas Guzman shares additional details in an SBA press release:
“These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process. We need to deliver forgiveness more efficiently so they can get back to enlivening our Main Streets, sustaining our neighborhoods and fueling our nation’s economy.”
Good news! There’s now a new round of Paycheck Protection Program funding for small business owners across America. The program opened for applications on January 11, 2021.
Paycheck Protection Program funds distributed in early 2020 helped small employers across America make payroll and meet other businesses expenses during the pandemic and economic shut-down and rebuild. This 2021 round has the same goal.
Here’s information you need to know about loan forgiveness for the current round of PPP funding.* It’s suggested that you start an application ASAP as these funds are expected to run out before the May deadline.
Here are the changes enacted to ease the paperwork requirements and expand the use of proceeds restrictions:
As of November 2020, the SBA has not set a deadline to apply for forgiveness, but you have 10 months after the end of your covered period before you'll be required to start making monthly payments.
This new round of PPP loans are eligible for loan forgiveness on the same terms and conditions as the initial PPP Loans, except that these second round PPP Loan borrowers with a principal amount of $150,000 or less are required to provide documentation of revenue reduction if such documentation was not provided at the time of the loan application
Here are process edits:
The original 11-page PPP forgiveness form, was replaced with two newer forms in June, and here is updated information. You can typically find these forms on your bank’s website or sba.gov.
Keep in mind the old adage: patience is a virtue. Lenders want to help you with your loan, but remember that filling out documents correctly and delivering them through the proper channels is still your responsibility.
SBA 7(a) loan: A traditional low-cost SBA 7(a) loan can help you transition back into full operation by providing working capital or debt refinance. An SBA 7(a) loan has several advantages compared to other options including:
Read more here: Rebuild Your Business with an SBA 7(a) Loan.
Bank Term loan: If you need funds faster, consider applying for a bank term loan. SmartBiz currently offers term loans through its bank partners for working capital, debt refinance, and new equipment purchase:
*Interest rate depends on loan term and the applicant's credit and financial profile.
Learn more about Bank Term loans available through the SmartBiz bank network: Bank Term Loans.
The SmartBiz streamlined PPP Loan application can help you fill out your application, upload required documents, and submit them to the bank quickly.**
SmartBiz can help you apply for these funds. We have specialized in SBA loans since 2013 and our network of banks has funded nearly $4 billion in SBA, PPP, and bank term loans.
Whether this is your first or second PPP loan, SmartBiz can help! Businesses with less than 500 employees that are negatively impacted by the pandemic can apply for their first PPP loan.
Start an application today here: PPP Loan Application
The SmartBiz Loans team has been hard at work to keep small business owners updated on the new developments on our small business blog.
Keep checking in for new content around the issues important to U.S. small business owners during the continuing pandemic.
*The SmartBiz® Small Business Blog and other related communications from SmartBiz Loans® are intended to provide general information on relevant topics for managing small businesses. Be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed. Please consult legal and financial professionals, and the applicable SBA rules, for further information.
**Eligible applications submitted according to applicable requirements for PPP will be referred for review by a lending institution in the SmartBiz bank network. The availability of PPP funds is limited, and SmartBiz and banks in the SmartBiz lending network make no representations or guarantees that PPP funds will be available when you apply.